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.
Economic Affairs Secretary Tarun Bajaj on Friday assured investors that the pace of reforms would continue in the coming months, including in the upcoming Budget. Talking about the state of the economy, he said the central bank has indicated a slight positive growth both in the third and fourth quarters of the current financial year. The Indian economy had contracted by an unprecedented 23.9 per cent during the first quarter of this fiscal due to the impact of the coronavirus pandemic. However, the pace of contraction narrowed in the second quarter to 7.5 per cent. On revenue mobilisation, Bajaj said the advance taxes numbers have also been better than what we had anticipated, and now the shortfall of total revenue that we have has actually come down as compared to the second quarter.or as compared to September 15 when the second advance taxes had come.
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.
Efforts on to include Indian government bonds in global indices from 2021: DEA Secretary
The RBI earlier this year opened certain specified categories of government securities (G-Secs) for non-resident investors as part of an initiative to deepen the bond market. PTI
Source: Twitter
The government is working on inclusion of Indian sovereign bonds in global bond indices from next year, Economic Affairs Secretary Tarun Bajaj said on Friday. This would attract higher foreign flows as many overseas funds are mandated to track global indices. It will also help bring in large passive investments from overseas, as a result of which more domestic capital would be available for industry as crowding out would be reduced.
Efforts on to include Indian govt bonds in global indices from next year: DEA Secretary
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Last Updated: Dec 18, 2020, 09:16 PM IST
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Synopsis
There are some other efforts also which have been made by Reserve Bank of India by allowing FPIs to invest in corporate bonds and the limit has been increased from 9 per cent to 15 per cent.
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This would attract higher foreign flows as many overseas funds are mandated to track global indices.
The government is working on inclusion of Indian sovereign bonds in global bond indices from next year, Economic Affairs Secretary Tarun Bajaj said on Friday.