1. Poor show by banks, private investors challenge for economy: Arun Jaitley

Poor show by banks, private investors challenge for economy: Arun Jaitley

Union Finance Minister Arun Jaitley on Saturday said that poor performance by private investors and banks still remains a challenge for the Indian economy.

By: | New Delhi | Updated: May 27, 2017 8:50 PM
Union Finance Minister Arun Jaitley on Saturday said that poor performance by private investors and banks still remains a challenge for the Indian economy. (PTI)

Union Finance Minister Arun Jaitley on Saturday said that poor performance by private investors and banks still remains a challenge for the Indian economy. “Despite Foreign Direct Investment (FDI) coming to India in large numbers, things are not working forcefully — investment in domestic industry is not satisfactory level. The condition is related to banks,” Jaitley told DD News in an interview here.

The Minister said with the Goods and Services Tax (GST) heading towards the July 1 rollout and global growth showing positive trends, these two challenges have been overcome. “But there is a third challenge — to increase investment cycle of domestic industry, which also has a relation to banking sector performance,” Jaitley said.

He earlier said that banks necessarily need to be in a robust position to support growth and if they have unacceptably high levels of non-performing assets (NPAs), it hinders their capacity. “The banks have to recover their bad loans to boost private investment, as domestic private investment needs to pick up. Efficiency has to be brought in so as to recover the money from defaulters,” he had said.

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Jaitley added that a defaulting litigant hurts the lending environment in India.The government on May 5 promulgated an ordinance to empower the Reserve Bank of India (RBI) in a big way to deal with the crisis of huge bad loans of state-run banks.

Jaitley had earlier said that a number of steps will be taken to revitalise public sector banks, including those relating to sale of assets, closure of non-profitable branches and reduction of overheads when memorandums of understanding (MoUs) are signed with them for recapitalisation.

He had said there is a list of stressed assets which the RBI would look into.

  1. S
    Sadasivan
    May 28, 2017 at 8:54 am
    SMEs are not getting Loans.Hence employment suffers.
    Reply
  2. S
    Sadasivan
    May 28, 2017 at 8:52 am
    To make banks take a haircut and thus making the tax payers and share-holders(temporarlty) lose BIGTIME and to save the Criminal Bankers and Defalcating Oligarchs,citing "policy paralysis" and the need for quick action,what was the need for an Ordinance?The RBI which has not given names of the Defaulters to the SC,citing archaic laws and flimsy pretexts,is given additional Power and responsibility!!!Can India survive?Never with this type of Dictatorial and foolish things being done.that too promulgated as Ordinances!Clearly Wall Street Bankers are being favoured too,as the Stocks of banks are highly overvalued,inn commensurate with the NPAs they hold.The holders of these Stocks should have lost Bigtime,but are going to profit immensely.SEBI is also to be blamed for these overvalued banking Stocks.
    Reply
  3. J
    Jayaram Putisari
    May 27, 2017 at 11:47 pm
    Today I observed that the State Bank of India debit card holders cannot make payment for Railway ticket purchased through IRCTC, whereas I find most of the leading private banks have payment gateways. Is this not yet another instance of promoting private banks at the cost of leading nationalised banks. I am sure that only public sector banks can fulfill the role of social banking in a large way. Weakening public sector ins utions to prop up private ins utions will be disastrous for the country if the average people are important enough for us. I can say for sure that the private sector has not done anywhere close to their potential to help improve the conditions of an unlucky individual, despite enough and more publicity on his innocent plight. I cannot elaborate here. But, from personal experience I can infer that lot of things are not progressing the way it should be in the country. So, we need change in the present order!
    Reply

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