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Best of BS Opinion: Hope fades for PSBs, a future without promoters & more

Public sector banks (PSBs) are reported to have written off about Rs 8 trillion worth of loans over the last seven years, which is more than twice the capital infused by the government in the same period. This is clearly an unsustainable position, and the government cannot perpetually keep infusing large sums of capital in the banking system. It has been issuing recapitalisation bonds over the last few years because of budget constraints, but this medium also has limits. In this context, our lead editorial notes that since there are limitations to the extent PSBs can be reformed and are likely to remain a drag on government finances, the government should speed up their privatisation.Read here

Life insurance and mutual funds are different kettle of fish; here s why parity of treatment is not possible

: Wednesday, July 21, 2021, 4:00 PM IST Life insurance and mutual funds are different kettle of fish; here s why parity of treatment is not possible Photo by Monstera from Pexels Deepak Parekh, arguably the doyen of the Indian financial sector who founded the HDFC group and brought the idea of home finance companies into the Indian consciousness, has urged the insurance regulator to emulate the SEBI and prescribe Total Expenses Ratio (TER) and forget the minutiae of micromanagement of investment of life insurer’s funds. The SEBI in April 2020 ushered in regime of TER pursuant to which a mutual fund scheme’s chargeable expenses are restricted on a tapering scale. To wit, on the first Rs 500 crore of the average daily net assets managed, 2.25 percent can be the maximum expenses that can be loaded on the unit holders and so on till only 1.05 percent is allowed on the remaining Rs 50,000 crore or more of average net assets. In return for this adherence to fiscal discipline

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