Nirmala sitharaman

Finance Minister Nirmala Sitharaman Market chatter is that Budget 202 1 may offer some roadmap to address the problem of bad loans in the banking system. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. How can banks speed up bad asset resolution? Among options, the most favoured idea is the creation of a bad bank--a long-pending proposal in the Indian banking industry. What is a bad bank? A 'bad bank' is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. Once toxic assets are transferred to this entity, attempts for an early resolution by experts begins while originating banks can focus on their business. Banks can transfer NPAs to a bad bank at a discount. The price discovery can happen at a later stage. To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called 'Project Sashakt', which had a five-point plan for bad loan resolution … [Read more...] about Budget 2021: Will ‘bad bank’ take off this time? 5 reasons why the timing could be just right

After long years of delay, Finance Minister Nirmala Sitharaman has announced the setting up of an entity to address the stressed assets of banks. The organization will be set up through an Asset Reconstruction Company (ARC) model, she said in the 2021 Budget Speech. Details of the proposals are still awaited. This institution, what is commonly known as ‘bad bank’, will be a major boost for bad asset resolution in the financial system and has been in discussions for long. Banks can transfer bad assets to this entity at a discount. Experts will then attempt for a resolution through a professional approach, while originating banks can focus on new business. On January 27, Moneycontrol reported that a bad bank is likely to be announced in the Budget. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. What is a bad bank? To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called … [Read more...] about Budget 2021: FM announces bad bank, why it is a big step towards addressing Indian banks’ toxic assets worries

Transfer of 15 bad loan accounts worth Rs 50,000 crore to the National Asset Reconstruction Company could not be completed within the deadline due to procedural delays, Union Bank of India Managing Director and CEO Rajkiran Rai G on Wednesday said, and assured that the process will conclude by the end of April. In January this year, State Bank of India (SBI) chairman Dinesh Khara had said that the National Asset Reconstruction Company (NARCL) received all approvals to commence operations, and a total of 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to the bad bank in a phased manner. In the first phase, banks agreed to transfer 15 NPA (Non-Performing Asset) accounts worth Rs 50,000 crore by March 31, 2022. Union Bank MD on Wednesday said that the transfer of these stressed assets is expected to take place by this month-end. "We were trying to do that before March 31, but we couldn’t complete all the processes. For the first time, we are doing a … [Read more...] about Rs 50,000 crore loans to be transferred to bad bank by April-end: Union Bank MD

Any assessment of a government's performance invariably ends up at the economic door. At the start of Narendra Modi's ninth year as prime minister (PM), it is then pertinent to ask: how has the Indian economy fared so far? Making any straight comparisons between now and May 2014 would be unfair given the impact of the coronavirus pandemic. And even before the pandemic's end, Russia’s invasion of Ukraine upended all calculations again. "No one country today can plan for its recovery...because of these kinds of disturbances. Our recovery, not just of India, but for countries everywhere, will be severely hampered," Finance Minister Nirmala Sitharaman had noted in late February a day after Russia attacked Ukraine. But it must not be forgotten that India has attempted to kick-start its economic recovery multiple times in the last eight years. The first of these was soon after Modi took charge as PM in May 2014. Working in tandem with Raghuram Rajan at the Reserve Bank of … [Read more...] about Modi govt @ 8 | Pandemic hides economy’s past troubles as restart button hit again

- A + A (June 22): An Indian ministerial panel will meet next week to discuss a goods and services tax on cryptocurrency transactions, people with knowledge on the matter said. The panel, comprising federal and states’ finance ministers, is seeking to broaden the tax net to track dealings in virtual digital assets in a more effective manner, the people said, declining to be identified citing rules on speaking with media. The panel is meeting for two days starting June 28 in the northern Indian state of Chandigarh. The panel is unlikely to finalize a rate in the upcoming meeting but discussions may be held on placing it in the highest tax slab of 28%, the people said. A finance ministry spokesperson did not immediately respond to calls seeking comments. Earlier this year, Finance Minister Nirmala Sitharaman imposed a levy of 30% on income from transfer of virtual assets and a 1% tax at source on all crypto transactions in a bid to assess the size of crypto market … [Read more...] about India panel to consider sales tax on cryptocurrency next week

Representative image. The Internet and Mobile Association of India (IAMAI) on June 21 announced the formation of a Venture Capital (VC) Committee with marquee venture funds like Sequoia India, SoftBank, and Multiples Alternate Asset Management, among others as members. The new committee will work on public policy consultations, stakeholder engagement, ecosystem enhancement, and building a strong industry network for VC firms. In a press release, the not-for-profit industry body also said the committee will help in highlighting sector-specific challenges faced by portfolio companies of the member VC firms. Established in 2004, IAMAI is a not-for-profit industry body representing the digital services industry with over 400 Indian and multinational corporations as its members. IAMAI, in the release, informed that Vikas Agnihotri, Operating Partner at SoftBank Investment Advisers will chair the VC Committee and Shweta Rajpal Kohli, Chief Public Policy Officer of Sequoia … [Read more...] about Sequoia India, SoftBank, others join IAMAI-launched Venture Capital Committee