Money & Banking
Jaitley allots Rs.25,000 crore for state-run banks' recapitalisation
New Delhi : Continuing government efforts to deal with the high levels of non-performing assets (NPAs), or bad debts, of state-run banks, Finance Minister Arun Jaitley on Monday allocated Rs.25,000 crore towards their recapitalisation in the next fiscal.
 
He made the announcement while presenting in parliament the union budget proposals for the next fiscal. 
 
Jaitley plans to provide Rs.25,000 crore capital each in the current and next fiscal years, 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).
 
The Rs.25,000 crore this year are being provided through three tranches.
 
Around 40 percent of the amount is to be given to those banks which require support, and all PSBs will be brought to the level of at least 7.5 percent core capital by the end of fiscal 2016, the finance ministry has said.
 
In the second tranche, 40 percent of capital is to be allocated to State Bank of India, Bank of Baroda, Bank of India, Punjab National Bank, Canara Bank and IDBI Bank.
 
The remaining 20 percent is to be allocated to the banks based on their performance during the three quarters in the current year.
 
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.
 
Meanwhile, the government on Sunday named former comptroller and auditor general Vinod Rai has been named 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.
 
Taking the first step towards a holding company structure for state-run banks, the government, in August last, announced the setting up of a Banks Board Bureau (BBB) that will recommend appointment of directors in PSBs and advise on ways of raising funds and dealing with stressed assets.
 
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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Kejriwal's car attacked in Punjab
Ludhiana : Delhi Chief Minister Arvind Kejriwal had a narrow escape on Monday when some men armed with iron rods attacked his car here, coming "within an inch of grievously injuring" him, the AAP said.
 
Kejriwal, whose five-day tour of Punjab ends later in the day, tweeted that his car was attacked with sticks and stones, breaking the front glass pane.
 
"Badals and Congress nervous? They can't break my spirits," the Aam Aadmi Party leader added.
 
AAP leader Ashish Khetan called it a "well orchestrated attack" and said the "goons sent by Badals attacked Kejriwal's car with stones and rods as police stood by. 
 
"The attackers came within an inch of grievously injuring Kejriwal. It was only by god's grace that he escaped unhurt," Khetan added.
 
The AAP gave no further details. It was not immediately clear if Kejriwal, who usually sits to the left of the driver, continued with his journey or not.
 
The AAP put out a photograph showing the shattered front glass pane with a visibly worried Punjab police officer standing close by. The car appeared to be stranded on a rural road, with a police vehicle in the front.
 
The AAP has emerged as a major player ahead of assembly elections in Punjab due next year.
 
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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No hard copies of budget, government goes the green way
New Delhi : Going the green way, the central government decided not to hand out hard copies of General Budget 2016-17 on Monday, making a departure from tradition.
 
The general budget, an exhaustive document, was handed over to journalists in the parliament building from designated counters every year after it was presented in the Lok Sabha.
 
This year, however, the government decided not to give copies to journalists as part of its bid to go green and save trees.
 
The general budget runs into hundreds of pages, and has several booklets including the details of allocations to different ministries, plan and revenue expenditure and other financial details.
 
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

Sunil Rebello

1 year ago

Going Green will save our Planet for our children.

Hope all follow the Green way.
some companies still send their Annual Reports in hard copies.

when will they and SEBI learn.

we should have a government on line. this will transform India. to no 1 in the world.

vswami

1 year ago

OFFHAND
Nothing to be complained of or grieved about ; with hundreds of pages and numerous booklets annexed,certainly too heavy (not worth its weight), to deserve free distribution of hard copy. In retrospect,decision not to, stands comparison to what happened likewise to circulation of hard copy of company annual audited accounts and audit report, to members.
No clue whether the govt., in the result,thereby wisely saved any cost to the exchequer!

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