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Bank of Maharashtra to sell Rs.500 crore NPAs

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The Union Finance Minister, Shri Pranab Mukherjee opening the Bank’s 1500th branch at Gangtok, Sikkim at the Concluding Ceremony of Platinum Jubilee Celebrations of the Bank of Maharashtra, in New Delhi on September 16, 2010. The Chief Minister of Maharashtra, Shri Ashok Chavan, the Minister of State for Finance, Shri Namo Narain Meena, the Minister of State for Communications & Information Technology, Shri Sachin Pilot and the CMD, Bank of Maharashtra, Shri Allen C A Pereira are also seen in the picture.

Kolkata: Bank of Maharashtra on Wednesday said it is planning to sell nearly Rs.500 crore of its bad loans to asset reconstruction companies (ARC) by the end of September this year.

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“By September, we have planned to sell Rs.500 crore of our non-performing assets (NPA) to ARCs and we need to be more aggressive on this,” the bank’s chairman and managing director Sushil Muhnot told media persons here on the sidelines of the FICCI Banking Conclave. A non-performing asset does not yield any income to the lender in the form of principal and interest payments.

While the amount to be sold will fall under the first tranche of the bank’s NPA sales, it has targeted shedding of another Rs.1,000-1,500 crore of these in the ongoing fiscal year. “However, it (total NPA sales) will depend on the success of the sales as projected in September,” the official said. In case the bank is unable to meet its Rs.500 crore NPA sales target, the second tranche will also hover around Rs.500 crore, Muhnot said. The public sector lender had sold Rs.200 crore of NPAs during 2014-15.

In the bank, the gross past dues of loans in the first quarter of the current fiscal year stood at 7.86 percent at Rs.7,574.86 crore. However, in case the financial institution is able to meet the target, the loans facing jeopardy of default may decline to 5.5-6 percent. Muhnot is hoping to grow the bank’s advances business by 12 percent and the deposits business by 14-15 percent in 2015-16.

(IANS)

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FICCI Recommends Government to Grant Priority Status to Healthcare Sector in Upcoming Budget

On taxes, the Ficci official said that reduction in corporate tax will boost the mood of the corporate sector and support the economy

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File:Assistant Secretary Rivkin Meets With Chairman of the Federation of Indian Chambers of Commerce and Industry (FICCI)'s Intellectual Property Rights Committee Sabharwal in New Delhi. Wikimedia Commons

The Federation of Indian Chambers of Commerce and Industry (Ficci) has recommended to the government to accord priority status to the healthcare sector in the upcoming budget. Sangita Reddy, Senior Vice President, Ficci, said on Thursday that the industry is looking forward to a clear and proactive policy in the upcoming budget including priority status to the health sector.

“Healthcare must receive a priority status so that it enables easier access to funding,” said Reddy, who is also the Joint MD, Apollo Hospitals Enterprise. In a video address on Ficci’s Youtube channel, Reddy noted that India has done a “commendable job towards universal health coverage by undertaking Ayushman Bharat”.

However, she added that private sector participation will be needed to scale up in areas like capability, number of beds, manpower and training. “The industry is also seeking support to get investment towards the new age healthcare and in that, data sharing, digitalisation, electronic health record, personal health records – all are very important buzz points,” she added.

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“Healthcare must receive a priority status so that it enables easier access to funding,” said Reddy, who is also the Joint MD, Apollo Hospitals Enterprise. Pixabay

Recommending steps to support startups, Reddy said that angel tax must be removed as it helps in spurring the entrepreneurial spirit, creating and nurturing innovation, and creating startups which can be the unicorns of tomorrow.

Highlighting the importance of the environment and water, she said that some important budget announcements for water conservation and preservation were expected. On taxes, the Ficci official said that reduction in corporate tax will boost the mood of the corporate sector and support the economy.

ALSO READ: Poor Oral Health Associated with Liver Cancer: Study

Also, an upward revision in the individual income tax slabs will further boost consumption and enhance GDP growth. Reddy also said that there are a lot of opportunities for the banking sector. “The banking sector needs further look whether in terms of promoting greater liquidity or innovation in terms of the enablement of more hands having access to low cost funding,” she said.

Reddy stressed on strengthening the education sector. “The education sector and the follow through of what happens to human resources is another very important area which I am sure the budget will focus on,” she said. (IANS)