Lending Re-boot: Bad Bank expected to absorb Rs 2 lk cr NPAs
By IANS |
Published on
Thu, Feb 4 2021 16:06 IST |
0 Views
KV Subramanian. (File Photo: IANS). Image Source: IANS News
New Delhi, Feb 4 : India s growth is set to further accelerate on the back of the path breaking plan to set up a Bad Bank , which is expected to absorb Rs 2 lakh crore worth of non-performing assets (NPA).
Accordingly, the process is expected to clean up banks books and allow them to lend more freely.
According to the Finance Ministry s Chief Economic Advisor Krishnamurthy Venkata Subramanian, the crucial reform measure in the sector will pave the way for a stronger banking sector.
Read more about Banks to seek leeway from RBI for new asset reconstruction company on Business Standard. Senior bankers said over 70 per cent provision for assets will be moved to the ARC
New ARCs will induce competition: SBI chief
February 04, 2021
The idea is to address large divergences observed in asset classification and provisioning in banks’ credit portfolios vis-à-vis RBI’s supervisory assessments
The idea is to address large divergences observed in asset classification and provisioning in banks’ credit portfolios vis-à-vis RBI’s supervisory assessments×
The proposed Asset Reconstruction Company (ARC)-Asset Management Company (AMC) structure for the resolution of stressed assets of banks will induce competition among ARCs, thereby shaking up the market, according to Dinesh Kumar Khara, Chairman, State Bank of India (SBI).
“I am sure other ARCs will…rise to the occasion and maybe they will also re-think their strategies,” he said. There are about 28 ARCs in the country.
Budget 2021 has Rishabh Pant’s swashbuckling cover-drives and Cheteshwar Pujara’s watchful defence
Budget 2021 was daring with its allocations and infrastructure push, and at the same time watchful about fiscal consolidation and credible projections Sushant Hede
Finance Minister Nirmala Sitharaman (Centre).
Just ahead of Budget 2021, the Chief Economic Adviser drew attention to the cricket team’s emphatic victory in Australia, and highlighted that in the Budget there will be policy measures which combines the flamboyance and aggressive stroke play of Rishabh Pant with the conservative-cum-stolid approach of Cheteshwar Pujara.
Very much in line with these statements, the Budget announced by Finance Minister Nirmala Sitharaman took a leaf out of the batting styles of both these batsmen to announce an infrastructure-focussed budget with bits of notable reform agenda and more transparency in the revenue and deficit projections.
Kalpajit Saikia
kalpajitsaikia@gmail.com)
Union Budget in India is an overhyped event, a hangover from the days of license raj. Everyone looks forward to the day with an expectation that it will change the economic destiny of the country. That s nowhere close to reality. The reactions to the Budget are also equally interesting. It is appreciated by the party in power and its supporters, criticized by the opposition and hailed by the Industry leaving the common men clueless about the event.
At the most, the Budget can demonstrate the intent of the Government in power. It shows the direction in which the ruling party wants to take the economy of the country. Country s economic future is determined by various executive actions the government takes throughout the year. In fact, the government avoids announcement of some of the tough measures in the Budget because of the attention it draws. It is important to understand that in a country like India, the Finance Minister needs to work