The finance ministry does not issue any advisory or direction to Life Insurance Corporation of India (LIC) on matters related to investments, finance minister Nirmala Sitharaman told Parliament on Monday, reiterating that the state-run insurer operates independently.“The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment, and fiduciary compliance and are governed by the provisions of Insurance Act, 1938, as well as regulations issued by the Insurance Regulator ...

Before you decide to raise a personal loan, it is recommended to compare the interest rates charged by different banks. These rates tend to change from time to time.-Notably, even a small difference of 50 basis points in interest rates on personal loans can lead to huge savings for investors over a period of time. For instance, a ₹10 lakh loan for 5 years can lead to savings of ₹14,711 when the interest is 9.5% (instead of 10%). The savings amount to ₹29,422 when the loan amount is ₹20 lakh with all other v ...

Core Viewpoint - The Indian government is preparing for another round of public sector bank consolidation to create larger institutions capable of meeting the country's growing investment and credit needs, following a previous consolidation that reduced the number of state-owned banks from 27 to 12 [1][5]. Group 1: Current State of Indian Banking - The Indian banking system is considered small by global standards, with only two banks, State Bank of India (SBI) and HDFC Bank, ranking among the world's 100 largest banks at 43rd and 73rd respectively [2][5]. - The 12 public sector banks (PSBs) collectively manage assets worth approximately $1.95 trillion, significantly smaller than major Chinese banks [5]. - PSBs have recently shown strong financial performance, recording a net profit of ₹1.78 trillion in 2024-25, supported by improved loan books and a gross non-performing asset (NPA) ratio that has declined to a ten-year low of 2.6% [6][7]. Group 2: Implications of Consolidation - The government aims to leverage the current financial strength of PSBs to facilitate consolidation without risking instability, as profitable banks can better absorb transition costs [10]. - A Reserve Bank of India (RBI) study indicates that past bank mergers have generally improved balance-sheet strength, with 70% of acquirers showing better loan-to-assets and loan-to-deposits ratios [11]. - However, operational efficiency improvements have been mixed, with only one-third of mergers strengthening the cost-to-income ratio, suggesting that integration synergies may take time to realize [12]. Group 3: Risks of Increased Concentration - Consolidation may lead to the creation of "too big to fail" institutions, with the potential for a single large bank's failure to impact the entire banking system, eroding capital buffers and triggering liquidity stress [15][18]. - The concentration of banking power raises concerns, as the top three lenders already control around 41% of total assets, which could increase further with consolidation [22]. - The experience of other countries suggests that scale and depth in banking can be achieved without high concentration, indicating that a more diversified banking system could mitigate systemic risks [19][22].

Core Insights - The Indian economy grew at 8.2% in the second quarter of FY26, surpassing the RBI's projection of 6.8%, marking the fastest growth in six quarters [5][8] - Retail inflation dropped to 0.25% in October, the lowest since 2015, complicating the RBI's monetary policy decisions [5][8] - A poll of 20 economists showed 12 expect a 25 basis points rate cut to 5.25%, while 8 anticipate the rate will remain unchanged [8] Economic Growth - The nominal GDP growth for the second quarter was recorded at 8.7%, slightly down from 8.8% the previous year [5][8] - Economists are cautious about future growth, with expectations of a slowdown in the second half of FY26 [7][8] Inflation Forecast - The RBI has revised its full-year FY26 inflation estimate down to 2.6% from 4.2% in February, with forecasts of 4% in Q4 FY26 and 4.5% in Q1 FY27 [6][8] - Current estimates suggest inflation could undershoot the RBI's forecast by 50-60 basis points, potentially supporting a rate cut in December [7][8] Monetary Policy Outlook - The RBI has cut the policy rate by 100 basis points since February, maintaining a pause since August, while rates on outstanding loans have decreased by 54 basis points [8] - Economists express mixed views on the upcoming RBI rate decision, with some indicating a need for caution due to low nominal growth numbers [7][8]

Market Performance - The BSE benchmark increased by 474.75 points or 0.55%, reaching a record high of 86,055.86 on Thursday [1][6] - The combined market valuation of seven of the top-10 most valued firms rose by Rs 96,200.95 crore last week [6] Top Gainers - Reliance Industries saw an increase of Rs 28,282.86 crore, bringing its market valuation to Rs 21,20,335.47 crore [1][6] - Bajaj Finance's valuation climbed by Rs 20,347.52 crore to Rs 6,45,676.11 crore [2][6] - HDFC Bank's valuation jumped by Rs 13,611.11 crore to Rs 15,48,743.67 crore [4][6] - ICICI Bank surged by Rs 13,599.62 crore to Rs 9,92,725.97 crore [4][6] - Hindustan Unilever's market capitalisation increased by Rs 7,671.41 crore to Rs 5,79,644.16 crore [5][6] - State Bank of India's valuation rose by Rs 6,415.28 crore to Rs 9,04,185.15 crore [5][6] - Infosys' valuation climbed by Rs 6,273.15 crore to Rs 6,47,961.98 crore [6] Top Losers - Bharti Airtel's market capitalisation dropped by Rs 35,239.01 crore to Rs 11,98,040.84 crore [6] - LIC's market capitalisation declined by Rs 4,996.75 crore to Rs 5,65,581.29 crore [6] - TCS's valuation dipped by Rs 3,762.81 crore to Rs 11,35,952.85 crore [6] Ranking of Top Firms - The ranking of the top-10 firms is led by Reliance Industries, followed by HDFC Bank, Bharti Airtel, TCS, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and LIC [6]

Market Valuation Overview - The combined market valuation of seven of the top-10 most valued firms increased by ₹96,200.95 crore last week, driven by Reliance Industries and Bajaj Finance amid a positive equity market trend [1] - The BSE benchmark rose by 474.75 points or 0.55%, with the Sensex reaching a record high of 86,055.86 [1] Gainers and Losers - Among the top-10 firms, Reliance Industries, HDFC Bank, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, and Hindustan Unilever saw increases in their valuations, while Bharti Airtel, Tata Consultancy Services (TCS), and Life Insurance Corporation of India (LIC) experienced declines [2] - Reliance Industries' market valuation increased by ₹28,282.86 crore, reaching ₹21,20,335.47 crore [2] Individual Firm Valuations - Bajaj Finance's valuation rose by ₹20,347.52 crore to ₹6,45,676.11 crore [4] - HDFC Bank's valuation increased by ₹13,611.11 crore to ₹15,48,743.67 crore [4] - ICICI Bank's valuation surged by ₹13,599.62 crore to ₹9,92,725.97 crore [4] - Hindustan Unilever's market capitalization edged up by ₹7,671.41 crore to ₹5,79,644.16 crore [4] - State Bank of India's valuation increased by ₹6,415.28 crore to ₹9,04,185.15 crore [4] - Infosys' valuation climbed by ₹6,273.15 crore to ₹6,47,961.98 crore [5] Declines in Valuation - Bharti Airtel's market capitalization fell by ₹35,239.01 crore to ₹11,98,040.84 crore [6] - LIC's market capitalization decreased by ₹4,996.75 crore to ₹5,65,581.29 crore [6] - TCS's valuation dipped by ₹3,762.81 crore to ₹11,35,952.85 crore [6] Ranking of Top-10 Firms - The ranking of the top-10 firms is led by Reliance Industries, followed by HDFC Bank, Bharti Airtel, TCS, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and LIC [6]

Investing in properties is among the most preferred options across age groups in India. It is also common for holders of old or ancestral properties to sell their residence and use the proceeds to buy an apartment or a villa in gated communities. Many would also want to use the money to construct their own property. The sharp appreciation in real estate assets has given many the affordability to deploy the gains for moving to newer acquired residences.However, on the operational front it is not always easy ...

Core Insights - Goldman Sachs has updated its 10-year forecast for global equities, projecting the S&P 500 to return 6.5% annually, which is below the global average of 7.7% annually [1][2] - Asian and emerging-market stocks are expected to outperform, with projected annual returns of 10.3% and 10.9% respectively in local currency, and 12.6% and 12.8% when measured in U.S. dollars [2] Vanguard FTSE Pacific ETF - The Vanguard FTSE Pacific ETF tracks 2,300 companies in Asia, primarily in Japan, Australia, and Korea, with significant exposure to financial, industrial, and consumer discretionary sectors [4] - Over the past decade, the S&P 500 returned 288%, while the Vanguard FTSE Pacific ETF returned only 105% [4][5] - The ETF has a low expense ratio of 0.07%, making it a cost-effective option for gaining exposure to Asian equities [5] Vanguard FTSE Emerging Markets ETF - The Vanguard FTSE Emerging Markets ETF measures around 6,000 companies in emerging markets, focusing on China, Taiwan, and India, with heavy investments in technology, financial, and consumer discretionary sectors [8] - Similar to the Pacific ETF, the S&P 500 outperformed the Vanguard FTSE Emerging Markets ETF over the last decade, achieving a total return of 288% compared to the ETF's 106% [8][9] - This ETF also has a modest expense ratio of 0.07%, providing an affordable way to invest in emerging markets [9] Investment Strategy Considerations - Despite the potential for Asian and emerging-market stocks to outperform, there is a strong recommendation to maintain a larger portion of investment in U.S. stocks, particularly the S&P 500 index fund, due to its historical performance [10][12] - Past forecasts by Goldman Sachs have been overly conservative, as seen in their 2015 prediction for the S&P 500, which underestimated actual returns [11][12]

Core Insights - Sectoral funds focused on public sector banks (PSBs) have outperformed other domestic mutual fund categories, achieving nearly a 28% rise in the Nifty PSU Bank index over the past six months [1][3] - Active banking and financial services funds have lagged behind, with median returns of only 9.2% during the same period, primarily due to their heavy investment in private sector lenders [3][4] Investment Composition - Most active banking and financial services (BFSI) funds allocate over 50% of their investments to the top 4-5 private sector banks, which dominate the banking sector's profit pool [4][6] - HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank collectively account for 66% of the Nifty Financial Services index, while State Bank of India (SBI) is the only PSB with over 5% weight in the index [4][5] Performance Analysis - Despite the flexibility of active funds to build independent portfolios, their performance is still benchmarked against indices, leading to a performance gap with PSB indices [5][6] - Direct plans of BFSI schemes have generally outperformed the Nifty Financial Services total return index, which increased by 7.17% in the last six months [5] Market Outlook - Experts suggest that the performance gap between PSU and private sector banks may narrow in the near term, with private banks expected to outperform in the medium term due to their superior deposit franchises and operational efficiencies [7][8] - The rally in PSU banks may have peaked, with a potential sector rotation anticipated in 2026, as the Nifty PSU Bank index appears overextended after a multi-year rally [9]

Core Insights - The article emphasizes the importance of comparing fixed deposit (FD) interest rates across different banks, particularly for senior citizens who receive an additional 50 basis points on their deposits [1] Bank Interest Rates Summary - **HDFC Bank**: Offers the highest interest rate of 7.1% for senior citizens on a tenor of 18-21 months, with rates ranging from 6.75% to 6.9% for tenors between 1-5 years [2] - **ICICI Bank**: Provides an interest rate of 7.2% for tenors of 2 to 5 years, starting from 6.75% for a 1-year tenor for senior citizens [2] - **Kotak Mahindra Bank**: Offers 7.2% interest on FDs with tenors between 391 days to less than 2 years, and 6.75% for a 1-year deposit [3] - **Federal Bank**: Provides a competitive interest rate of 7.2% on a 36-month FD for senior citizens, with a 1-year tenor offering 6.75% [4] - **State Bank of India (SBI)**: The largest bank in India offers 7.05% interest for tenors between 5 to 10 years, including a 50 basis points premium under the SBI We Care program [5] - **Canara Bank**: Offers 7% interest on a 444-day FD for senior citizens, with a 1-year tenor also providing 6.75% [5] - **Union Bank of India**: Provides 7.1% interest on a 3-year FD for senior citizens, with a 1-year tenor offering 6.9% [6]