A new study has, for the first time, unveiled a complex global web of offshore financial centres that rob the world economy of US$500-650 billion annually, including US$200 billion from developing economies.
The National Stock Exchange has surged 22% this year, just behind South Korea’s and Hong Kong’s markets making it South Asia’s third-best performing market this year.
The display of such largesse should be a troubling signal for shareholders who worry about corporate governance.
Finance Minister Arun Jaitley said that these two reforms combined will “certainly lead to greater compliance, greater digitisation,” adding that “expansion of the tax base of direct and indirect taxes is already visible.”
The extra provisioning needed would reduce the profits of creditor banks by about a quarter in the financial year to March 2018, according to India Ratings.
The central bank said that making the list public would “hurt the business climate in the country and endanger the jobs of thousands working in these entities”.
If you are the owner of a credit or a debit card, there is a non-negligible chance that you may be subject to fraud. Here’s how to stay safe.
India has gone further than any other country in legislating on corporate social responsibility, but the law should be revised to be more precise and engage company stakeholders better.
On Thursday, telecom minister Manoj Sinha will meet with various industry players to discuss their demands. Most banks and telecom operators (barring Reliance Jio) want a number of sops to prevent industry loans from turning into NPAs.
Prachi Mishra, a Columbia University-trained economist who spent nearly 10 years working for the IMF, joined the RBI as a “specialist adviser” in November 2014.
State Bank of India, the biggest lender to the airlines, has pegged its losses at Rs 900 crore, however, the actual losses may be even higher than these estimates.
The Prevention of Money Laundering Act will likely need to be amended for mandatory Aadhaar-bank account linkage. The punishment for non-compliance, however, is without doubt unconstitutional.
Jaypee Infratech, Electrosteel Steels, Monnet Ispat, Alok Industries, ABG Shipyard and Jyoti Structures are also among the firms reportedly singled out.
Existing bank account holders have been asked to furnish the Aadhaar number issued by UIDAI by December 31, 2017, failing which the account will cease to be operational.
The RBI said it has identified accounts which owe more than Rs 50 billion and in which at least 60% of the assets have been declared non-performing already.
The latest refusal to cut rates, and the MPC’s decision to decline meeting with finance ministry officials before its deliberations on monetary policy, will be hailed by those who are interested in good governance.
It is not the CBI’s business to decide interest rates for loan settlement or set any banking benchmarks, especially if the RBI and Centre have had nothing to say on the matter.
Finance ministry officials were scheduled to meet with all six members of the monetary policy committee before its policy statement today, in a move that had raised worries over the MPC’s independence.
The MPC records the fact that during demonetisation there were “fire sales” of essential items that depressed prices. The unusually sharp fall in CPI inflation in April cannot be taken for granted.
As expected, the central bank struck a less hawkish tone in its policy statement released on Wednesday.
What analysts and investors are looking for this time is a less hawkish policy statement to reflect reduced fears of inflationary pressures.
The additional loss of Rs 5,792 crores in the quarter ended March 2017 surprised the capital market. Were the regulator, the parent bank and SBI’s chairperson aware of the state of asset quality in its subsidiaries?
The company’s shares plunged as much as 20% on Monday on the back of a $150-million fourth-quarter loss and after a media report said that at least 10 lenders had classified its loans as SMA1 or SMA2.
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.