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Government package soon for stressed state-run banks: Sinha

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NEW DELHI/INDIA, 15NOV10 - Arun Jaitley, Leader of the Opposition, Rajya Sabha, Parliament of India, India, during the Fostering Public Leadership at the World Economic Forum's India Economic Summit 2010 held in New Delhi, 14-16 November 2010. Copyright (cc-by-sa) © World Economic Forum (www.weforum.org/Photo Matthew Jordaan matthew.jordaan@inl.co.za)
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New Delhi: The government is working on a comprehensive package to help stressed state-run banks and improve the flow of credit for industry, Minister of state for Finance Jayant Sinha said on Wednesday.

“NPAs (non performing assets, or distressed loans) are simply a symptom of the underlying issues that need to be resolved,” Sinha said at an event here organised by the Indian Private Equity and Venture Capital Association.

“We are preparing a comprehensive package which we will bring out shortly,” he added.

n10 jayant sinha
Minister of state for Finance Jayant Sinha

The minister said the government was trying to improve corporate governance and strengthen management at state-run banks, while also overhauling annual targets for public sector lenders to increase the focus on efficiency.

Sinha said he would meet banks over the next two days in Bangalore to fine-tune their capital-raising plans.

“We are trying to understand exactly what is their capital requirement going to be in the next one to three years. We are there to support and provide them the capital,” he said.

According to the Reserve Bank of India, gross NPAs as a ratio of total loans could rise to 4.8 percent by September from 4.6 percent in March.

The government has agreed to pump in about $3 billion into the banks during the current fiscal towards their capitalization.
Finance Minister Arun Jaitley last month said his ministry is currently preparing a list of projects stalled due to lack of finance to set in motion the process of their revival and thus bring down the NPAs of banks.

“Many stalled projects have started. The secretary, department of financial services, in consultation with others, will prepare a list of projects stalled because of finance,” Jaitley had told reporters here after meeting with the heads of public and private sector banks.

NEW DELHI/INDIA, 15NOV10 - Arun Jaitley, Leader of the Opposition, Rajya Sabha, Parliament of India, India, during the Fostering Public Leadership at the World Economic Forum's India Economic Summit 2010 held in New Delhi, 14-16 November 2010.  Copyright (cc-by-sa) © World Economic Forum (www.weforum.org/Photo Matthew Jordaan matthew.jordaan@inl.co.za)

“We will deal with these stalled projects directly. We will call representatives of state governments, of the projects and the departments concerned over the next few weeks,” he said.

Gross non-performing assets, or distressed loans, of state-run banks have gone up to Rs.260,531 crore as in December 2014. In the fourth quarter of January to March 2015, NPAs had come down from 5.64 to 5.2 percent.

As per the finance ministry’s Economic Survey published before February’s union budget, stalled projects as in December-end amounted to Rs.880,000 crore.

(IANS)

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RBI To Transfer 50,000cr Surplus To The Central Government

The Reserve Bank's income comprises of earnings from foreign and domestic sources, with the major portion being contributed by interest receipts, complemented by relatively small amounts of income from discount, exchange, commission, etc.

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Reserve Bank of India. VOA

The Reserve Bank of India (RBI) on Wednesday said that it will transfer Rs 50,000 crore as surplus to the central government for the year ended June 30, 2018.

The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government’s coffers for the year ended June 30, 2017.

According to RBI, the decision to transfer the surplus was taken by its Central Board which met here on Wednesday.

The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government's coffers for the year ended June 30, 2017.
The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government’s coffers for the year ended June 30, 2017.

The Reserve Bank’s income comprises of earnings from foreign and domestic sources, with the major portion being contributed by interest receipts, complemented by relatively small amounts of income from discount, exchange, commission, etc.

Also Read: RBI Penalty not to have any material impact: IDBI Bank

The RBI Act stipulates that after making provisions for contingencies and corpus funds as defined therein, the balance profit of the apex bank is to be transferred to the central government. (IANS)