How bad bank model of ARC, AMC would work to manage NPAs
The proposed two-tier ARC, AMC framework, ostensibly created with public structure and private sector in mind for the respective entities, may create more problems than they serve
Hari Hara Mishra | March 8, 2021 | Updated 19:10 IST
Just making a mega NPA corporation procure NPAs from banks at a price remunerative to them can only be a pain killer, not the cure
Four years back, the Economic Survey mentioned the need for creation of the Public Sector Asset Rehabilitation Agency (PARA) to solve the twin balance sheet problems of overleveraged companies and bad-loan-encumbered banks.
Published: Monday, March 8, 2021, 18:30 [IST]
New Delhi, Mar 08: The Enforcement Directorate has arrested a NCP politician and three of his associates in connection with a money laundering probe linked to an alleged fraud of over Rs 71 crore in a Pune-based cooperative bank promoted by them, the agency said on Monday.
Those arrested include prime accused Anil Shivajirao Bhosale, a former MLC of the Nationalist Congress Party (NCP) and main promoter-director of the Shivajirao Bhosale Cooperative Bank in Pune, another director Suryaji Pandurang Jadhav, chief executive officer Tanaji Dattu Padwal and a person identified as Shailesh Bhosale.
They were placed under arrest, under sections of the Prevention of Money Laundering Act (PMLA), on March 6 at the Yerawada Jail in Pune where they were lodged in judicial custody in the fraud case. The case is also being probed by the local police, the Enforcement Directorate (ED) said.
The National Assembly Standing Committee on Finance and Revenue unanimously recommended that “The Corporate Restructuring Companies (Amendment) Bill, 2020,” maybe passed by the National Assembly.
The 54th meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chairmanship of MNA, Faiz Ullah.
The Committee discussed “The Corporate Restructuring Companies (Amendment) Bill, 2020).” Deputy Governor State Bank of Pakistan (SBP), Jameel Ahmed, and President Bankers Association, Muhammad Aurangzeb, briefed the Committee about the requirements of the Bill. The Committee members have expressed their apprehensions regarding the implementation of this Act.
According to the objects and reasons of the proposed legislation, the existing institutional arrangements and legal processes for the revival and rehabilitation of distressed entities are time-consuming and inadequate, making the rehabilitation of distressed entities challenging.
The distress sale of national assets is unwise
Updated:
Updated:
March 04, 2021 12:45 IST
The government’s intent to offload public sector units and banks will only result in the long-term loss of public wealth
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The government’s intent to offload public sector units and banks will only result in the long-term loss of public wealth
The origin of the ongoing crisis in the Indian economy was the fateful night of November 8, 2016. Dr. Manmohan Singh’s prescient words in Parliament that demonetisation would lead to a 2% drop in the GDP were not heeded by Prime Minister Narendra Modi. On the contrary, a badly designed and hastily implemented flawed Goods and Services Tax (GST) followed, further devastating vast numbers of medium and small enterprises, as well as the vast informal sector of the economy. Together, these twin disasters robbed millions of their livelihoods and plunged the Indian economy into a prolonged slump that predates the COVID-19 pan