Centre mulls setting up bad bank among other options to improve banking sector: DEA Secretary
Tarun Bajaj was responding to a query on whether the government would consider setting up of a bad bank as a one-time measure for reducing the burden of Non-Performing Assets (NPAs) of the public sector banks
PTI | December 19, 2020 | Updated 10:59 IST
The government is exploring all options, including setting up of a bad bank, to improve the health of the country s banking sector, Economic Affairs Secretary Tarun Bajaj said on Friday. He also said the government has recapitalised public sector banks and continue to pump in capital as per requirements.
Re-imagining finance for MSMEs to transform the Indian economy December 19, 2020, 11:01 PM IST
“Every business starts small.”
Our small businesses are the growth engines of the Indian economy, contributing 30% of the GDP. However, they are facing the most trying times during this pandemic.
At least 10% of micro-enterprises, 99% of India’s enterprise base, shut shop permanently post lockdown. Widespread informality and limited access to formal credit among India’s ~70 million enterprises has meant that less than 7% of India’s enterprises will benefit from the Government of India’s well-intentioned Emergency Credit Line Guarantee Scheme (ECLGS), a fully guaranteed and subsidized top loan for existing formal borrowers. Soon to be deployed schemes – fund of funds and distressed asset funds – are much smaller in scale and will likely support a creamy layer and well-established set of enterprises.
The government is exploring all options, including setting up of a bad bank, to improve the health of the country s banking sector, Economic Affairs Secretary Tarun Bajaj said on Friday. He also said the government has recapitalised public sector banks and continue to pump in capital as per requirements. We are looking at various options, including the option you mentioned (of bad bank), and it is still in the works. The RBI has been asking us, and we ourselves also feel that we need to recapitalise. We have recapitalised to a large extent and this year too, we have kept some money for recapitalisation so that commitment is there., he said.
House panel on Covid-19 suggests Epidemic Act s review - india news hindustantimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hindustantimes.com Daily Mail and Mail on Sunday newspapers.
Govt exploring setting up bad bank, all other options: DEA Secretary Tarun Bajaj
Bajaj was responding to a query on whether the government would consider setting up of a bad bank as a one-time measure for reducing the burden of Non-Performing Assets (NPAs) of the public sector banks. PTI
NPA NPA Non performing assests
The government is exploring all options, including setting up of a bad bank, to improve the health of the country s banking sector, Economic Affairs Secretary Tarun Bajaj said on December 18. He also said the government has recapitalised public sector banks and continue to pump in capital as per requirements.