A look back at some of our biggest and best stories from this week. In case you missed them, here's a recap:
India’s Financial Services: Trust deficit, truth, and dare
For many months now, a significant chunk of India’s financial services ecosystem is grappling with a chronic trust deficit around asset quality, disclosures and governance. The events and market reaction of the past few days around some co-operative banks, private sector banks and Non-Bank Finance Companies (NBFCs) serve as a sharp reminder of this inconvenient truth. A trust deficit is any financial ecosystem’s worst nightmare. How can we best address this? Ananth Narayan answers.
Boeing 737 MAX Grounding: Airbus continues to be an option on the table, says Ajay Singh of SpiceJet
SpiceJet chairman Ajay Singh said the airline is talking with Airbus with greater degree of seriousness but the progress of these talks would depend on what happens with Boeing's MAX. "Airbus continues to be an option on the table but the cost of replacing aircraft is
not an easy process," he said. PMC Bank crisis: Why an urgent clean-up of cooperative lenders is required
The collapse of PMC Bank has shifted everyone's focus to the functionality of cooperative banks. And the one crucial question before us is - how safe are these banks? According to CNBC-TV18's Latha Venkatesh, the structure of cooperative banks is a recipe for disaster. In her latest column, she throws light on the rate of mortality of cooperatives and explains what measures can be taken to avoid such cases. Most importantly, she also shares what the future of PMC Bank depositors looks like.
Who shops during an Amazon Prime sale? And what do they buy?
Amazon Prime has made its open-to-all-sale days attractive by not imposing any membership bar and also retailers play right along by giving deep discounts, sometimes in advance of the sale period. That’s because, abroad, all retailers see spikes during this period and they are all looking for a huge chunk of our money to come their way. Amazon sees a 45 percent spike in sales, Costco sees a 27 percent increase, Apple sees a 22 percent hike and Best Buy sees 13 percent pick-up in sales.
Why everyone loves to hate Sebi
In the past 27 years of its operations, Sebi has been often censured by the SAT and the Supreme Court for a variety of reasons. The securities market participants, viz., self-regulatory organisations such as stock exchanges and depositories, intermediaries like stockbrokers, service providers like asset management companies, portfolio managers, merchant bankers, and investors and traders in securities, etc, have all been more critical of Sebi than appreciative, writes Vijay Kumar Gaba.
An open letter to Greta Thunberg: Time for some truth after your dare
"Ignoring the theatrical aspect of the speech, the very core of your argument seems exaggerated if not entirely flawed. You seem to be pining for a Utopian world that has been sullied by the machinations of the past couple of centuries. The idyllic peace of this planet in which young people lived and aged happily has been debased by the toxic fumes of progress. The unstinted growth spurred by the liberal free-marketers has resulted in a catastrophic chain-of-events, the consequences of which will be shattering in the years to come," writes Shashwat DC, Features Editor at CNBC-TV18.
Rakesh Jhunjhunwala made Rs 100 crore in just one month with this stock. Do you own it?
The Mumbai-based firm has witnessed a steady performance in the current fiscal despite the ongoing economic slowdown. At the beginning of this month, the firm said it was targeting a growth of 9-10 percent in FY2019-20, despite economic headwinds slowing demand.
Why external benchmarking won’t pinch
"There’s been much hullabaloo about how linking lending rates to external benchmarks will pose a challenge for banks when liabilities aren’t similarly pegged. There have also been views expressed on how this can impact the margins of banks. Rationally, when you have one moving and one static number there is bound to be volatility due to expansion and compression of spreads between the two. However, what’s also true is that banks have not in the past been keeping their lending rates static. And that’s what must be factored in," writes Sonal Sachdev.
6 factors that are holding down Indian aviation
Needless to say, the growth will have to be supported by an entire ecosystem including various stakeholders. From Original Equipment Manufacturers (OEMs) to lessors and financiers, from Maintenance Repair and Overhaul (MRO) providers to multi-lateral agencies, and from airports to airlines – to name a few. But the current ecosystem has far too many distortions, writes aviation expert Satyendra Pandey.
There have been similar incidents in the past regarding different banks. A lot of rumours floating around during these times, which may not always be correct. A lot of investors are naturally worried about their deposits. Whenever you invest, make sure that you invest after due research, which at times becomes difficult because such fraud cases are difficult to identify.
PMC Bank Crisis: Must dos when you think your bank deposits are no longer safe