Thread by @EdelweissWM

Mr.@TamalBandyo and Dr. Viral Acharya are live, addressing pressing questions of the hour right now! Listen to their inputs at bit.ly/39NG5jv.

#EmergingIdeas2020 #Live #Conference

"Savers are earning very little on their fixed income assets. Risks are higher and yields have collapsed. Financial conditions are more benign than pre-Covid levels. Domestic savings are not being deployed for essential expenditures."

- Dr. Viral Acharya

#EmergingIdeas2020

"Private banks have been like an Achilles heel because of lazy lending and not providing credit to middle tier. We need to fix governance and dilute stakes of the government rather than coming up with adventurous solutions."

- Dr. Viral Acharya

#EmergingIdeas2020

"The long end of the yield curve has become unhinged from the relatively benign shorter end. This causes collateral damage that further leads to the undercapitilisation of the banking system."

- Dr. Viral Acharya

#EmergingIdeas2020 #Live #Conference

"In the Indian banking sector, the first phase of recognition of bad assets is over, we are now into the second phase of recovery.”

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020 #Live #Conference

"The moratorium and restructuring window have contributed to things going back to normalcy. Restructuring requests have been lower than expected. I don’t think there has been an incentive to lie (about these facts)."

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020

"Bank balance sheets have also been stronger and far more resilient than before." -

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020

"Credit growth is pathetic. Private banks are offering better rates and services than public sector banks."

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020

"Corporate India is risk averse, banks are not. Private sector banks are conservative and not interested in balance sheet growth."

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020

"This kind of sugar rush (liquidity) has not been seen in India before."

- Tamal Bandyopadhyay (@TamalBandyo)

#EmergingIdeas2020

(1/2)"Corporate NPAs may rightly not be as large as anticipated. However, I remain worried about individual and retail loans. The Pandemic has caused the most loss to services. If we can create fiscal room, there should be a demand push."

(2/2)" There should be focus on quality of infrastructure and NREGA, and we can use our digital network to deploy direct benefits to those in the lower income sections. There should be rolling out of subsidies and massive divestment."

- Dr. Viral Acharya

#EmergingIdeas2020

"Sometimes PSUs have to be sold because they bleed much money. It is important to stop the loss as we have to make fiscal space."

- Dr. Viral Acharya

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"MSMEs have been struggling every year for the past five years. Restructuring relief has also been released every year for their losses. I fail to see how they can sustain without equity injections."

- Dr. Viral Acharya

#EmergingIdeas2020

"We have credit-to-GDP ratio of ~50% and have nearly the highest NPAs in the world. The burden of this paradox falls on common borrowers who either face higher costs while borrowing or have the quantity rationed."

- Dr. Viral Acharya

#EmergingIdeas2020

"Between 2006-08, our credit was 3 times the GDP. Credit grew by 30%. The credit growth is low now because of undercapitalisation and the PCA framework of the RBI. Public sector banks should be treated as business enterprises rather than socio-political instruments."
@TamalBandyo

"More than 80% of the incremental credit is from private banks, which were far lower in number (until public sector consolidations). Public sector banks are eroding their market share faster than expected."

- Tamal Bandyopadhyay @TamalBandyo

#EmergingIdeas2020 #Live