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The Dollar Business Bureau Finance Minister Arun Jaitley on Wednesday said that the government will continue with the tax reforms, repair the banking structure and to get moving stalled infrastructure projects to drive growth. However, it is not still ready to sell off its state-run banks.   On the top of economic policy priorities, Jaitley said that he was firm on sticking to a ‘very stiff’ timetable that foresees passing crucial enabling legislations for the new goods and services tax (GST) this season.   He said that once implemented, the new GST would have a ‘transformational’ effect by developing a common marketplace for the first time in the country, whereas also serving as a transfer mechanism that would support the poorer federal states.  The aim of ...

Sharath Chowdary Devaluation of the rupee may not boost exports from India. But in all likelihood, it will have an inflationary impact offsetting any benefit to the country’s economy. The current value of rupee is pretty reasonable, the Reserve Bank of India Governor Raghuram Rajan said. This was in reply to a question posed by The Dollar Business Bureau, if there was any need to devaluate the rupee to increase exports from the country, given the current scenario of global economic slowdown. Detailing the side effects of rupee devaluation, he said, “Currency is a complicated animal. Inflation will pick up in the country due to devaluation. Cheaper prices may allow exporting more but it also makes imports costlier. We need to pay ...

The Dollar Business Bureau The various initiatives of Indian government and the newly introduced Insolvency and Bankruptcy Code, 2016 are boosting the country’s corporate bond market, said CRISIL in a report. According to it, lesser profitability of public sector banks (PSBs) has reduced their capability in accruing capital. Weak performance, particularly due to the rise in non-performing assets (NPAs), has created a challenging environment for the PSBs in raising money from the capital market. Higher provisioning is another factor that has weakened the ability of PSBs in offering better interest rates. Along with the rise in credit demand, capital requirement would also increase. There are also several other imperatives of growth, the report states. India will require Rs.43 lakh crore (approximately $650 billion) for ...

The Dollar Business Bureau   The Bankruptcy Law has been passed by the Joint Parliament Standing Committee, and is expected to be discussed in the current budget session of the Parliament, Finance Minister Arun Jaitley said on Wednesday.Speaking at the second meeting of the MoF’s Consultative Committee, Jaitley said the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and the Debts Recovery Tribunal Act (DRT) have also been amended to make the recovery process efficient. Giving out further information on this announcement, the Finance minister said the government has taken an array of measures to deal with the Non Performing Assets (NPAs) in the banking sector, especially in the case of public sector banks (PSBs). The Ministry ...

RBI took a very positive move which helps further in recapitalisation of banks, says Finance Minister Source: PTI Welcoming RBI's easing of rules to allow lenders to bolster capital ratios, Indian Finance Minister Arun Jaitley on Wednesday said the government will take all steps and provide resources to keep public sector banks in good health. During his post-Budget interaction with the industry, he said banking is a stressed sector and so the government is professionalising PSU banks and recapitalising them. "RBI last evening took a very positive move which helps further in recapitalisation of banks," he said. Easing rules on what banks can count towards their core capital requirement under the upcoming Basel III rules, the Reserve Bank of India allowed reserves associated with ...

The Dollar Business Bureau In a move supporting Indian banking sector, the Union Finance Minister Arun Jaitley on Wednesday assured of strengthening Public Sector Banks (PSB) and clearing worries over Non Performing Assets (NPAs). Stating that there was no ground to panic over NPAs, the finance minister said the government's first objective was to strengthen fragile public sector banks (PSBs). “Consolidation of weaker state-run banks with stronger ones will be the next step if some of the lenders continue to remain fragile, despite steps to strengthen them,” he said, speaking at Indian Summit 2015, organised by The Economist magazine in New Delhi on Wednesday. Jaitley also highlighted key measures to be taken by the government to strengthen PSBs, which include capital infusion and hiring of professionals ...