Jaypee Infratech, Electrosteel Steels, Monnet Ispat, Alok Industries, ABG Shipyard and Jyoti Structures are also among the firms reportedly singled out.
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.
While C. Rammanohar Reddy’s Demonetisation and Black Money tries to present a moderate view of demonetisation and its impact, what is missing is the way the impact is estimated and why official data may be lacking.
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.
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.
Discounting loans, one of the primary grievances the CBI and stockbroker Sanjay Dutt have raised, by itself isn’t criminal or fraudulent. How do the allegations stack up?
The RBI refused to make the list of loan defaulters public despite an order by the Supreme Court in 2015 to make this information public.
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.
Over the weekend, the ransomware called ‘Wanna Cry’ hit systems in over 100 countries in one of the most widespread cyber attacks in history.
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.
The RTI backlog at the central bank had risen to 38,884 applications at the end of 2015-16 – three times the number of applications received by it during the year.
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 markets argue that pursuing a specific 4% target takes away the flexibility needed in an economy that must grow by at least 8% to allow for full employment.
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 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?
The insurance coverage in 2015 was 22.3%, with a government expenditure of Rs 2,955 crore. But by spending 4.5x since, how does the government admit to a coverage of only 23%?
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.
Signalling its worries about inflation, the RBI surprised markets last week in raising the secondary reverse repo rate by 25 basis points to 6%.
The MPC claims that the decision to narrow the policy corridor is consistent with a neutral stance of of monetary policy.
Will the Modi government’s digital push help it curb “excess cash” and print fewer notes than what was extinguished through demonetisation?
With the end of the crisis in sight, the gains and losses from demonetisation can be assessed with some confidence.
The RBI had warned that any user, holder, investor and trader dealing with virtual currencies would be doing so at his or her own risk.
The charge of moral hazard reeks of double standards. However, will India’s fiscal deficit targets allow for such a waiver?
Extracts from C. Rammanohar Reddy’s Demonetisation and Black Money that explore whether the note ban had any impact on the rich, how Digital India entered the narrative and the impact of the move on the poor.
Despite the strong mandate, Modi still faces a struggle to implement reforms to boost growth and jobs.
The 60-page report looks at the impact of the note ban on growth, inflation and a wide range of organised sectors.
Post demonetisation, the government has been focusing on increasing digital payments and even incentivising people to move away from cash payments.
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.
The re-monetisation exercise should be completed in two to three months, RBI deputy governor Viral V. Acharya said on Monday.
Sharp estimate revisions, channel stuffing and the hypothetical schism between formal and informal sector growth. What makes sense, what doesn’t and what is perhaps slightly questionable?
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.”
Forcing people to use digital payment methods will require the government to increase the cost of using cash, which will be a greater burden for the poor.
Discussion on serious economic challenges currently faced by India is either absent or trivialised in this year’s Economic Survey.
The nation’s foreign currency reserves were depleted after it bought a $140 million bond to pay the GMR group $240 million as compensation for cancelling a contract.
Both the former and current RBI governors are surely acquainted with the Gujarati saying “Kona Baapni Diwali”. This cannot be the Centre’s stance when it comes to solving India’s NPA crisis.