Money & Banking
Consolidation of some state-run banks post-fortifying: Jaitley
New Delhi: The government will go ahead with a plan for some consolidation of state-run banks after their recapitalisation, which is currently underway, and strengthening is done, Finance Minister Arun Jaitley said on Tuesday.
 
"We have now undertaken this exercise of recapitalisation of banks within the existing resources. I am trying to find additional resources for that purpose, to strengthen the banks. Once they are strengthened, I am going for consolidation of some of the banks," he said at an International Finance Corporation (IFC) event here.
 
Continuing government efforts to deal with the high levels of non-performing assets (NPAs), or bad debts, of state-run banks, Jaitley had, in his February union budget, allocated Rs.25,000 crore towards their recapitalisation in the current fiscal.
 
He has provisioned to provide Rs.25,000 crore capital each during 2015-16 and the current fiscal, while Rs.20,000 crore would be provided during 2017-18 and 2018-19.
 
In July last, the government had presented to parliament a supplementary demand for grants to provide for Rs.12,000 crore towards recapitalisation of public sector banks (PSBs).
 
As per estimates, PSBs would need additional capital of up to Rs.240,000 crore by 2018 to meet the Basel III capital adequacy norms, put in place to guard against a repeat of the situation following the 2008 US financial crisis.
 
The quantum of exposure of Indian scheduled banks in terms of gross non-productive assets, re-cast loans and write-offs was Rs.9.5 lakh crore as of September last year.
 
The government earlier this year named former comptroller and auditor general Vinod Rai the first chairman of the Banks Board Bureau that will give advice on how to recover the bad loans of state-run banks.
 
The members co-opted to the board are Anil K. Khandelwal, former chair of Bank of Baroda, H.N. Sinor, former joint managing director of ICICI Bank and Rupa Kudwa, former managing director and chief executive of Crisil.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Economic growth for 2015-16 to be nearly 8 percent: Debroy
Kolkata: Economic growth in 2015-16 will be close to eight percent, in view of increasing public investments in roads, railways and resolution of problems of projects that were stuck with banks, NITI Aayog member Bibek Debroy said on Tuesday.
 
"Public investments on roads and the railways have gone up. Several things have been done to resolve the problems of projects that are stuck with banks. As a result of all of those, I am inclined to think that this year (2015-16), the growth will not be 7.5 percent as the finance ministry has suggested, but it will be little bit more. It will probably be close to 8 percent," he said here.
 
Addressing a special session on 'Growth Engines for the Indian Economy: Some Perspectives', organised by Bharat Chamber of Commerce, he said: "Double digit growth is impossible until global economies recover."
 
Debroy also said there were pointless speculations about the veracity of growth figures and national income with the method of calculating the new growth numbers differing from the old one.
 
"The present series is much more in conformity with the international practice than the old series was and because several things have changed, it is impossible to compare the new series with the old series," he said.
 
Inflation has gone down and the RBI slashed rates, he said.
 
"If one is looking at interest rate to provide a kick-start to growth, that required a much sharper interest rate cut than the RBI is in a position to do. Central banks, world over tend to be conservative," he said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

Mahesh S Bhatt

1 year ago

Is somebody accounting stressed assets and ROI??

It appeaers growth without ROI?

This is the story past 8 years & we are getting into bigger debt challenges across industries.

An International agency puts Debt /GDP ratio is around 165% around 8 months back for India? Is it true?

Mahesh

Panama Papers: Who leaked the biggest haul of secret documents?

The leak turned out to be a Monday mayhem for around 214,000 hidden offshore companies after a group of global journalists, International Consortium of Investigative Journalists (ICIJ), got hold of the papers of the practically unknown law firm Mossack Fonseca based in Panama

 

The Panama Papers leak, claimed by many as the "world's biggest", has created ripples across the world, upsetting the rich and mighty with accounts in tax havens. But there is confusion about who actually leaked the papers.
 
The leak turned out to be a Monday mayhem for around 214,000 hidden offshore companies after a group of global journalists, International Consortium of Investigative Journalists (ICIJ), got hold of the papers of the practically unknown law firm Mossack Fonseca based in Panama. 
 
So who leaked the 'Panama Papers' -- a collection of over 2,600 GB of data comprising more than 11 million documents? 
 
According to reports, over a year ago, an anonymous source contacted German newspaper Süddeutsche Zeitung (SZ) and submitted encrypted internal documents from Mossack Fonseca, detailing how the firm set up and sold anonymous offshore companies around the world. 
 
In the months that followed, the number of documents continued to grow far beyond the original leak. 
 
Ultimately, Süddeutsche Zeitung acquired about 2.6 terabytes, or 2,600 GB, of data --making the leak the biggest that journalists had ever worked with. 
 
The source, who contacted the German newspaper's reporter, Bastian Oberway, via encrypted chat wanted neither financial compensation nor anything else in return, apart from a few security measures, the daily said on its website.
 
After getting their hands on the data, the Süddeutsche Zeitung decided to analyse the data in cooperation with the ICIJ as the consortium had already coordinated the research for past projects that the daily was also involved in. 
 
In the past 12 months, around 400 journalists from more than 100 media organisations in over 80 countries have taken part in researching the documents. The team included journalists from the Guardian and the BBC in England, Le Monde in France, La Nación in Argentina and The Indian Express in India. 
 
In Germany, Suddeutsche Zeitung journalists cooperated with their colleagues from two public broadcasters, NDR and WDR. Journalists from the Swiss Sonntagszeitung and the Austrian weekly Falter have also worked on the project, as have their colleagues at ORF, Austria's national public broadcaster. 
 
The international team initially met in Washington, Munich, Lillehammer and London to map out the research process.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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