In an order issued by the additional chief secretary, the finance department laid down fresh conditions for opening bank accounts, managing deposits and ensuring stricter oversight.Under the new norms, administrative secretaries can approve opening of accounts for govt schemes only in nationalised banks operating in the state. Opening accounts in corporate or private sector banks will now require prior approval from the finance department.The govt said any proposal to open an account with a private bank mus ...

Core Insights - A recent report from Kotak Securities highlights the Indian stock market's poor performance, revealing low corporate earnings growth and near-zero investment returns over the past year [2][4] - The report suggests that the narrative of a buoyant stock market is misleading, as it overlooks fundamental issues affecting corporate and market performance [3][4] Group 1: Stock Market Performance - The report titled "1-year, $90 bn and 0% Return Later" challenges the prevailing optimism about the stock market by emphasizing the lack of substantial returns [2] - Assertions of stock market buoyancy are contradicted by middling earnings and high valuations, indicating a disconnect between retail investment inflows and actual market health [4][5] Group 2: Household Financial Savings - Net financial savings (NFS) of the household sector fell to 5.2% of GDP in 2023-24, down from 7.4% in 2016-17, primarily due to rising household liabilities [5][6] - The share of deposits in household financial assets decreased from 49.7% in 2011-12 to 38.3% in 2023-24, while investment in equity and funds rose from 12.8% to 26.8% during the same period [6] Group 3: Economic Implications - Low deposit rates are driving households towards riskier equity investments despite stagnant income growth, raising concerns about financial stability [7][9] - The Reserve Bank of India (RBI) acknowledges the shift from banking to equity as a healthy trend, although there are concerns about the risks associated with this transition [10][11] Group 4: Government Revenue and Market Dynamics - The increasing share of tax revenues from capital markets, particularly from securities transaction tax (STT), indicates a governmental interest in maintaining stock market activity [12] - The 2025-26 Union budget projects a 131% growth in STT collections compared to 2023-24, suggesting a potential motive for sustaining market performance [12][13]