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What Went Wrong at IndusInd Bank? Derivatives Accounting Mess and Insider Trading

Leave a Comment / Uncategorized / Samir Kumar Barua

On March 10, 2025, IndusInd Bank—a well-known private bank in India—made a shocking announcement. It had been quietly accumulating financial losses for years, and only now, under pressure from a new Reserve Bank of India (RBI) directive, was it telling the public. The total hit? Nearly Rs 1,960 crore in losses, and a significant fall […]

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Whither India’s GDP?

Leave a Comment / Uncategorized / Samir Kumar Barua

There has been an uproar in the media about India’s GDP since the release of the Press Note (https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2079024) by the Ministry of Statistics and Programme Implementation on November 29, 2024. The note informed that the “Real GDP has been estimated to grow at 5.4% in Q2 of FY 2024-25”, implying that India’s real GDP

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Global Rupee?

Leave a Comment / Uncategorized / Samir Kumar Barua

The July 11, 2022, notification from RBI titled ‘International Trade Settlement in Indian Rupees (INR)’ has been hailed as an innovative move to counter the recent sharp depreciation of the rupee and to establish the rupee as a multilateral currency. The notification will allow exports and imports from many countries, including Russia to be denominated

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What should India’s response be to rising inflation?

Leave a Comment / Uncategorized / Samir Kumar Barua

The Rising Inflation Rates The disruptions in the global supply chain brought about by COVID-19, exacerbated by the invasion of Ukraine by Russia, have sent prices of all items skyrocketing. Table 1 details the inflation rates for several major economies. While the rise in the inflation rate has been high for 2022, the increases are

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TANSTAAFL

Leave a Comment / Uncategorized / Samir Kumar Barua

Over the financial year 2019-20, the Reserve Bank of India (RBI) cut the Repo rate (the rate at which RBI lends money to commercial banks) by 1.85%, from 6.25% at the beginning of the year (April 1, 2019) to 4.4% by March 31, 2020. The reductions in the Repo rate not only resulted in reductions

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The RBI Measures of March 27, 2020

Leave a Comment / Uncategorized / Samir Kumar Barua

On March 27, the Reserve Bank of India announced a clutch of measures to enhance the liquidity of financial markets and thereby improve the flow of credit. This article provides brief description of the key measures with analysis of how effective they would be, and suggests what remains to be done to deal with the

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Lessons from the Yes Bank Fiasco

Leave a Comment / Uncategorized / Samir Kumar Barua

Authors: Samir K Barua and V Raghunathan March 13, the government approved RBI’s ‘Scheme of Reconstruction’ of Yes Bank proposed under Banking Regulations Act, 1949. The key features of the scheme were: a) restrictions on withdrawal of deposits from the bank, b) permanent write down of the AT-1 bonds issued by the bank, and c)

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