At Axis Bank and Yes Bank, it appears that a single auditor of a member firm of Ernst and Young has overlooked gross NPAs of a staggering Rs 13,655 crore.
Senior officials at several global funds that manage huge investments have stated that these problems could cause the destabilisation of the Indian economy.
New provisions were introduced in EPFO’s Citizens Charter 2017 in an attempt to bring transparency, accountability to make the organisation more efficient.
While the loans are costlier than those offered by banks, which charge around 12% on average, they are processed more quickly and require little paperwork.
IDBI, which is almost 74% owned by the Indian government, had a net bad loans ratio of 9.61% as of December and will be the first lender to come under the RBI’s central bank curbs.
Bankers and analysts said the changes to legislation did not do enough to resolve the complex insolvency process or a much-needed bank recapitalisation.
Resolution of stressed assets is fundamentally a commercial decision. Is it really the RBI’s job to direct the banks on how to restructure stressed assets?
The move comes on the same day the President promulgated an ordinance aimed at tackling the bad loan crisis in India’s public sector banks.
The ordinance to amend the Banking Regulation Act will give a big boost to the government’s efforts to cut down on non-performing assets in the banking sector.
The amendment to the Banking Regulation Act will likely empower the RBI to prod banks into recovering non-performing assets (NPAs) from loan defaulters.
The three year-long CBI investigation into Jatin Mehta’s Winsome Diamonds has finally come to an end. While there are a number of questions still remaining, will the guilty be punished?
Nirmala Sitharaman’s insistence that currency fluctuations are the “new normal” hides a crucial fact: that the “real effective exchange rate” is affected by the fiscal decisions of central and state governments.
A sudden change in the currency with which old debts to the colonies had to be paid helped Britain consolidate its status as a financial centre
Founding editor of The Wire M.K. Venu interviews Ashish Khetan, senior spokesperson of Aam Aadmi Party and chairman of the Dialogue and Development Commission of Delhi about Vijay Mallya’s arrest and the fight against corruption in big business.
Directors of the banks may review the telecom sector latest by June 30, 2017
The discourse around non-performing assets (NPAs) remains largely focused on private corporations, while NPA concentration in public sector undertakings flies under the radar of scrutiny.
Leaving aside the historical traditions of each princely state bank, and the imminent implementation obstacles, the few advantages of this merger deserve closer scrutiny.
The constant extension of a deadline to reduce promoter shareholding could net Uday Kotak and his family members a hefty sum.
The attempt started after a bank employee opened up an email attachment that appeared to come from the RBI but actually contained malware.
Will the Modi government’s digital push help it curb “excess cash” and print fewer notes than what was extinguished through demonetisation?
This week’s $23 billion tie-up between Idea Cellular, controlled by the Aditya Birla Group, and the Indian business of Vodafone Group, is the latest example of a trend that is squeezing major international investment banks.
The Reserve Bank of India last month allowed banks to make AT1 coupon payments from statutory reserves, a move analysts said was aimed at easing pressure on banks to service coupons on the bonds.
While the bank has denied rumours of a potential merger, what issues need to be considered? The bank’s operations and the state of its loans needs to be minutely examined.
The RBI official has proposed creating “bad bank”-type institutions to buy and restructure stressed loans, along with an approach to banks and defaulters that he called “tough love.”
The RBI’s statement, the first after the Budget, carries forward the Budget’s message of fiscal discipline and consolidation.
The RBI is opting to wait for more clarity on inflation trends and on how a radical crackdown on “black money” is impacting economic growth.
If the monetary policy committee waits until April, it will have a better idea of demonetisation’s negative impact and a firmer grasp of global commodity price trends.
Given the imperious attitude of new leaders to institutions of the old order, the questioning of central bank independence is a given.
Inflationary concerns aside, we also have to realise that fiscal deficits are always accompanied by trade deficits.
From potentially slashing middle-class subsidies as a method of funding a UBI, to eyeing the RBI’s reserves as a means of creating a ‘Bad Bank’, this year’s Economic Survey tackles three pressing issues.
In an interview with The Wire, the former central banker talks on the infeasibility of executing demonetisation while raising concerns over re-starting the working capital cycle of small and medium businesses.
In a letter to RBI governor Urjit Patel, the employee’s union says that the image of the central bank has been dented beyond repair.
How much money will come through the second income disclosure scheme and by tracking down hitherto unidentified black money? What will it be used for?
Deputy governor R. Gandhi’s claims on the quantity of low-value notes pumped into circulation are false. The giant release of small change is just another attempt at spin.
Is finance minister Arun Jaitley budgeting in the dark? One can’t have a strategy for economic revival without first estimating the economic impact of demonetisation.
India clearly lacks the adequate infrastructure required for becoming a cashless system. Among BRICS nations, in this regard, it is a laggard.
2017 will need to see less of the carrot and more of the stick in order to persuade India’s institutions to prepare against an ever-increasing number of cyber security threats.
It is dangerous for the government to seek financial stability at the cost of people who entrust their money to banks.
Blaming the money laundering instances on a few employees and suspending officials may deflect public and regulatory criticism but the cancer is widespread.
When the RBI signed off on demonetisation, its central board had the lowest number of directors in 15 years and only three truly independent directors.