Banks are likely to see their net interest margins (NIM) – broadly the difference between interest earned on loans and paid on deposits – shrink by another 30 basis points (bps) over the next few quarters. After hitting a peak of 3.3 per cent in the third quarter (Q3) of the financial year ended March 31, 2023 (FY23), NIMs have been on a downward trajectory, touching 3.13 per cent in Q2FY24 on higher cost of funds, according to capital markets firm CARE Ratings. Banks are still grappling with the Reserve Bank of India’s policy rate increases – that have made deposits costlier as the interest payable to customers has increased – and the regulatory actions on unsecured lending.

Global trends and trading activity of foreign investors would largely dictate terms in the equity markets this week amid a lack of major domestic triggers, analysts said. Markets may face near-term consolidation due to elevated valuations, they noted. “While the previous week was predominantly shaped by developments in the US Federal Reserve policy, attention will now shift to the Bank of Japan’s policy decision on December 19,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.

A 30-year-old woman has accused industrialist Sajjan Jindal of raping her after promising to marry her, a charge denied on Sunday by the billionaire. The woman, whose social media profile describes her as an actor, claimed she met Jindal (64), the chairman and managing director of the $23-billion JSW Group, at a cricket match in Dubai a few years ago which led to a friendship and subsequently to the industrialist getting attracted to her. The alleged sexual assault happened on January 24 last year inside the JSW Group headquarters, the woman, a Mumbai resident, has claimed, adding that the industrialist had promised to marry her.

Former Reserve Bank Governor Raghuram Rajan said India will still remain a lower middle country if the potential growth rate remains at 6 per cent annually without any rise in population by 2047 (Amrit Kaal) and will be reaching the end of the demographic dividend by then. Speaking at a programme organised by Manthanon on Saturday, the economist said if the country does not grow faster, it will grow older (demographically) before it gets richer, which means there is the burden of an aging population to deal with also at that point. Rajan said the GDP growth in India for the past two quarters was in the region of 7.5 per cent and if one looks at the labor force participation, it is very low and when it comes to female participation, “it is the lowest in the G20”.

IBC has been revolutionary in many ways and is a formidable instrument for stress resolution. And despite the room for improvement, the overall effectiveness of IBC in the distress space is unmatched, notes Saloni Kothari.