The country’s largest lender State Bank of India had exposure to the tune of $50 million, while Bank of Baroda had an exposure of $200 million at the time of the emirate’s debt crisis
The government today said that as many as seven banks in India, including SBI and ICICI Bank, had exposure worth $537 million in Dubai World and other group companies at the time of the emirate’s debt crisis in November 2009.
The exposure of the Indian scheduled commercial banks in India to Dubai World, Nakheel Reality and its group companies as on 30 November 2009, was $454.03 million for fund-based facilities and $82.94 million for non-fund based facilities, minister of state for finance Namo Narain Meena informed the Lok Sabha.
The country’s largest lender State Bank of India had exposure to the tune of $50 million, while Bank of Baroda had an exposure of $200 million.
Besides, private sector lender ICICI Bank had an exposure of over $28 million and HDFC Bank of $4.23 million.
Other foreign banks present in India with an exposure in Dubai are HSBC (about $44 million), Standard Chartered Bank (over $120 million) and Citibank ($86 million), Mr Meena said.
In November last year, the Dubai government-owned Dubai World had asked its creditors for six more months to repay its debts as asset prices were coming down.
Dubai World has total debts of $59 billion. This raised concerns over the financial health of the once financially strong emirate.
“The government is of the view that the recent global financial crisis has proved the soundness and resilience of our banking system, which has regained and sustained economic growth momentum in the country,” the minister added.
He added that Indian public sector banks are adequately capitalised and that they are maintaining higher Capital-to-Risk Weighted Assets Ratio (CRAR) to meet any additional provisioning requirement arising out of any unforeseen higher NPA slippages.
The Central Vigilance Commission has also expressed its concern over the delay in appointing chief vigilance officers in various key organisations
The Central Vigilance Commission (CVC) has reconstituted its advisory board on bank, commercial and financial frauds, reports PTI.
The six-member board will be headed by former chief vigilance commissioner Janki Ballabh.
Vittaldas Leeladhar, ex-deputy governor, RBI; Ravi Kamal Bhargava, IAS (retired); R Srikumar, IPS (retired); Mukand Chitale, chartered accountant and V Santhanaraman, ex-executive director, Bank of Baroda, will be the members of the board for a period of two years, according to the Commission’s performance report for February this year.
The tenure of the previous Board ended in 2009.
The Commission also expressed its concern over continuing delay in filling the post of chief vigilance officers (CVOs) in Delhi Transport Corporation and other key organisations.
The CVC is deeply concerned over continuing delays in filling the post of CVOs in organisations like Delhi Transport Corporation, Hindustan Shipyard Ltd, Power Grid Corporation India Ltd, Steel Authority of India Ltd and State Trading Corporation, the report said. “The government is being regularly reminded,” the report said.
The CVC disposed of 545 cases related to alleged corruption and effected recoveries to the tune of Rs19 crore in different ministries and government-run departments.
The Commission imposed a major penalty on 76 officers besides advising prosecution against nine officers—five from the ministry of personnel, PG and pensions and one each from the Central Board of Direct Taxes, Oil and Natural Gas Corporation, Government of NCT of Delhi and the railway ministry.
The CVC has also advised imposition of major penalty in 170 cases—47 in the railway ministry, 20 from the Municipal Corporation of Delhi, 16 from Bharat Petroleum Corporation Ltd and 10 from Bharat Coking Coal Ltd among others, the report said.
In a bid to drop prices in the domestic market, an export duty may also be imposed
The government may soon withdraw the 4% incentive on cotton yarn exports aimed at cooling its prices in the domestic market.
“The 4% duty benefit to yarn exporters under the duty drawback scheme is likely to be withdrawn soon,” a source told PTI, adding that the government was also considering to impose export duty on cotton yarn.
On 21st April, another export sop on yarn known as the Duty Entitlement Pass Book (DEPB) scheme was withdrawn.
Besides, yarn exporters have been asked to register their dispatches with the textile commissioner. Exporters can avail incentives either under the DEPB or the duty drawback scheme.
With cotton and yarn prices moving upwards, textiles minister Dayanidhi Maran is understood to have met finance minister Pranab Mukherjee on 21st April.
On 6th April, an inter-ministerial meeting chaired by the finance minister had discussed ways to check cotton and yarn prices.
Cotton yarn prices have jumped by over 30% in the past three months.