The Cabinet has given in-principle nod for providing need based re-capitalisation of banks till 2018-19 for ensuring compliance with the Basel III capital adequacy norms
New Delhi: Seeking to enhance lending by banks and help them meet capital adequacy norms, the government today approved infusion of Rs12,517 crore in around 10 state-owned banks over the next three months, reports PTI.
The Cabinet has also given in-principle nod for providing need based re-capitalisation of banks till 2018-19 for ensuring compliance with the Basel III capital adequacy norms.
“Pursuant to the Budget announcement made by the finance minister on 16 March 2012, we are infusing additional capital into the public sector banks. We will infuse before the end of this fiscal year a sum of Rs12,517 crore,” finance minister P Chidambaram said after the Cabinet meeting.
“We think about 9-10 banks will get the money... this will enable the banks to maintain the Tier I CRAR (capital to risk-weighted assets ratio) at a comfortable level and will be compliant to stricter capital adequacy norms of Basel III whenever Basel III is implemented,” he said.
The name of the banks, the amount for each bank and terms of the conditions will be decided in consultation with them at the time of infusion, the minister added.
The government infused about Rs20,117 crore in public sector banks during 2010-11, and Rs12,000 crore in 2011-12.
The Cabinet also gave in-principle approval for need- based additional capital infusion in PSBs (public sector banks) from 2013-14 to 2018 -19 for ensuring compliance with Basel-III—global banking norms on capital adequacy to minimise financial risk.
It will cater to the credit needs of productive sectors of the economy as well as help withstand the impact of stress in the economy, Mr Chidambaram said.
This will also support national and international banking operations of PSBs and boost the confidence of investors as well as the market sentiment, he added.
“Domestic diesel prices are not in tune with the international prices of crude,” chairman of the Prime Minister's Economic Advisory Council C Rangarajan said
Kolkata: The government will have to take action to correct the prices of diesel as its consumption is on the rise, reports PTI quoting chairman of Prime Minister's Economic Advisory Council C Rangarajan.
“Domestic diesel prices are not in tune with the international prices of crude. Action will have to be taken to correct the prices of diesel for attaining fiscal consolidation,” he said at a seminar by Indian Institute of Foreign Trade.
Asked when the next diesel price hike was expected, he said that it depended on the government.
“It is necessary to raise the diesel prices which may also help in bringing down the headline inflation,” Mr Rangarajan observed.
Hike in railway passenger fares, which was announced earlier, would also help the government in achieving fiscal consolidation, he added.
Stating that high inflation, high fiscal deficit and high current account deficit (CAD) were major areas of concern, Rangarajan, a former RBI governor, said the government was working towards bringing them under control.
High gold imports had contributed to high CAD which stood at 5.4% in the second half of 2012-13 and was creating pressure on the rupee.
NCR saw maximum launches of new homes at nearly 54,500 units in 2012, followed by Pune (24,000 new units), Mumbai (22,500 units) and Chennai (20,800 units)
New Delhi: About 1.62 lakh housing units were launched last year in India's eight major cities—a drop of 16% from 2011, reports PTI quoting global property consultant Cushman & Wakefield.
The cities tracked by the consultant are NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad.
“Residential market across major cities in India witnessed a drop in total number of units launched by approximately 16% over previous year. 2012 recorded launch of about 1,62,000 new units of residential properties across the eight major cities,” the report said.
A majority of the units were launched in the mid-segment comprising about 83% of total launches, it added.
NCR, Chennai, Bengaluru, Hyderabad and Ahmedabad witnessed decline in home launches compared with 2011, but Mumbai, Pune and Kolkata reversed the trend with higher launches.
NCR saw maximum launches of new homes at nearly 54,500 units in 2012, followed by Pune (24,000 new units), Mumbai (22,500 units) and Chennai (20,800 units).
“In 2012, the residential market saw proactive and innovative marketing and new launches of specialist projects on one side but restrained activities in terms of large scale development as most developers were cautious not to overestimate the end user demand market,” C&W executive managing director (South Asia) Sanjay Dutt said.
High inflation as well as home loan interest rates and slow economic growth had a strong impact on the end users making them more price sensitive than previously experienced, he said.
Dutt noted that cash-strapped developers were not willing to take up projects that could fall short in interest from end users, keeping their risk exposure to the minimum.
“Investor activities however have been strong in the residential market, with many viewing this as the right time to enter the market with the much needed capital for developers. This has been the primary reason why most markets across categories experienced a rise in values,” he said.