Economics of POS Vs ATM in India for Banks

June 10, 2017 · Filed Under bank · Comment 

India is still under-invested in both ATMs and POS [Credit Card Point of Sale systems]. The ATM industry, in their view, has enormous potential to grow in the medium term. This is evidenced even in countries where digital payment has shown higher acceptance rates. We have the debit card/ATM card population currently.

The economics of POS business favors issuing banks as compared to acquisition (Customer) banks. This is primarily because most of the MDR [Merchant Discount Rate] fees are taken by the issuing bank which results in a skewed investment scenario.

For example, the competition’s response to Read more

NHAI / REC Reduce Interest Rates on 54EC Capital Gain Tax Exemption Bonds

November 29, 2016 · Filed Under bank · Comment 

Breaking NewsKeeping in mind the reducing trend in interest rates on FDs and other fixed income securities after the Demonetisation of Rs 500 and Rs 1,000 notes by the most respected Government of India, both REC and NHAI have decided to reduce the rate of interest for 54EC Capital Gain Tax Exemption bonds wef 01.12.2016. The new rate of interest for these bonds will be 5.25 % per annum. The amount invested in REC 54EC Capital Gain Tax Exemption Bonds where the amount of investment is credited in REC’s Collection Accounts on or after 1st December, 2016 and where deemed date of allotment for the bonds is 31st December, 2016 or a later date, the coupon/ interest rate will be 5.25 % per annum.

Capital Gains Bond After Real Estate / Property Sale
These Capital Gains Bonds are very popular with Indians after selling their Real Estate / Property Read more

Rs 500 + Rs 1000 Currency Ban – Modi Corners Corrupt Congress Politicians / Bureaucrats

November 10, 2016 · Filed Under bank · Comment 

Discontinuing usage of either of Rs 500 or Rs 1000 notes can significantly increase the physical risks of holding black money [What we have seen is, weight of Rs 1 Crore in the form of hard cash rises from 12kgs to 100kgs if the denomination of the sum is changed from 1,000-Rupee notes to 100-Rupee notes]. In line with these expectations, the Government banned Rs500 and Rs1,000 notes. Modi-led NDA Government is committed to the crackdown on black money.

The Key takeaways from this call of demonetizing existing currency notes – (1) this move reflects the NDA’s strong resolve to curb Read more

Open Letter to Finance Minister Jaitley on Indian Banks

January 22, 2016 · Filed Under bank · Comment 

Everybody knows the Indian Banking System is under severe stress and here is an open letter to Finance Minister Mr. Arun Jaitley in the Narendra Modi led Government. The Author of this letter is Mr. Suresh Ganapathy Banking Analyst with Macquarie Capital Securities.

Dear Mr. FM – What are you going to do with the banks? A burning question in the minds of investors, markets, analysts etc is – what is the end game for PSU banks? Sir, the PSU banks, which control 70% of the banking
system assets, are in a bad shape with Read more

HDFC Bank Ready for Industrial Uptake & Economy

May 28, 2014 · Filed Under bank · Comment 

Mr Paresh Sukthankar, Deputy Managing Director reiterated that the bank is well positioned to exploit an investment cycle recovery – the stable funding base and capital position are key strengths. Operating leverage is still to play out and cost-income could improve further.

HDFC Bank should see a steady upturn in system loan growth to ~16% in FY15 and 18-20% in FY16. Management believes its strong balance sheet gives it an opportunity to strongly participate in any recovery, given its low NPLs and strong capital position. Low system deposit growth is a risk and management believes a focus on Read more

India’s RBI Policy Won’t Strengthen INR against USD – Need Strong Decisions to Curb BlackMoney Economy

July 30, 2013 · Filed Under bank · 1 Comment 

India’s Central Bank, the RBI introduced two rounds of liquidity tightening measures on 15th and 23rd July, which have served to push market rates sharply higher and brought temporary stability to the rupee, only to bounce back to Rs 60.45 against USD. Subbarao’s last meeting as RBI governor ended in a whimper rather than a bang – all interest rates were left unchanged as had been almost unanimously expected. Subbarao’s most likely successor is the pragmatic Raghuram Rajan who is current the chief economic advisor to the finance ministry.

The guidance paragraph in the RBI’s statement was more dovish than one might have been expected, suggesting that if hadn’t been for the weakness of the Read more

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