1.) Real bank stress may be hidden by easy liquidity: RBI's Shaktikanta Das

The extraordinary easy liquidity policies of the Reserve Bank of India (RBI) have helped banks report strong financial parameters but these numbers do not necessarily reflect the true stress in the system due to the pandemic, governor Shaktikanta Das said. For the second time in a row, the governor warned of the divergence between the financial markets and the real economy and raised red flags about ballooning stock and bond values, but said financial stability will be the "overarching goal" of the regulator. Congenial liquidity and financing conditions have shored up the financial parameters of banks, but it is recognized that the available accounting is inappropriate.

Question:

In light of the above situation, what according to you is the outlook for Indian banking industry?

2.) How Budget 2021 can be a stepping stone to $5-trillion GDP dream?

Will the Indian economy cross the $5-trillion mark? It is like asking if the sun will rise tomorrow. The real question is: when?

Belying many doomsday predictions, the Covid-struck Indian economy has proven to be resilient. Recent data provides some evident signs of recovery. Auto sales, consumer durables, freight traffic, and consumption of petroleum products, all have shown a marked acceleration in the last 3-4 months. The GST figures for December 2020 at Rs 1.15 lakh crore are by far the highest monthly collection with an impressive year-on-year growth rate of 11.6 percent.

Question:

In the current circumstances, do you believe that India can become a $5-trillion economy in the near future?