By Alastair Pavrey The banking sector has always been in the spotlight, for good or bad. Considered a backbone of the economy, the integrity of the institutions has been questioned due to various issues, ranging from the exponentially increasing Non-performing Asset (NPA) woes to the recent frauds making waves around the finance community. Let us look at how the sector performed in Q3 FY18, the NPA situation and how it is being resolved and finally why the MSME sector is emerging as a good proposition for banks to expand their loan portfolio, while significantly reducing the risk of “bad loans”. Banking Sector Performance Q3 FY18 As per CARE Ratings, the performance of banks continues to be stressed in Q3-FY18 as revealed by the performance of a sample of 30 banks which includes 13 PSBs and 17 private banks. Profits are under strain and the NPA issue continues to pressurize banks. ·       Growth in interest income in Q3-FY18 was 8.9% as against 2.3% in interest

By    Alastair Pavrey The Union Budget and the Monetary Policy have made February an important month for MSMEs, with various policies and measures announced to boost the sector. The Government and RBI together hope to make the sector as a catalyst to the growth of the Indian economy, through key structural reforms. The Union Budget 2018-19: Finance Minister Arun Jaitley presented the Union Budget 2018-19 on February 1 st , amidst the backdrop of the current economy recovering from the twin shocks of Demonetization and rollout of the Goods and Services Tax (GST). The budget provided major benefits to the agriculture and rural economy with a focus on employment and infrastructure creation. The MSME segment also came out as a winner with some important and helpful policies, in addition to steps towards a more inclusive economy. The government has increased spending which will boost consumption, production, and investments. The highlight to the budget was the