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Showing posts from December, 2016
Originally posted at AltExploit

The narrative that non-state actors contribute to stressed assets (NPAs/NPLs :: English / Hindi) via their infrastructural forays and are as complicit in debilitating the banking health in the country as their public counterparts (excuse me for the liberty of giving budgetary allocations the same stature) is slightly misplaced on one important count: accessibility to market mechanisms. The former are adventurous with their instrumentals (yes, more often than not resulting in ignominy, but ingenuous in escaping for a better invention of monetary and fiscal instruments), while the latter are hand-held devices suffocated by Governmental interference and constrictions. The key point lies in the fact that former and not the latter enjoy as well as enjoin connectography, the key pillar to globalised financial in- and out-flows. Turning on to LEF, which I personally feel has enough teeth to sink into narrowing the risk exposure, but, sharpness of the teeth is s…

Why should foreign portfolio investors feel the tremors of General Anti-Avoidance Rules, GAAR?

Earlier in the middle of 2013, the then UPA-2 succumbed to the dissensions amongst the investors to defer General Anti-Avoidance Rules or GAAR by two years. What had been codified in 2012 to become effective in 2013 was suddenly clothed in Government’s ‘realization’ of administrative preparedness to cope with. Smelt Fishy!!! Interestingly, GAAR was meant to empower the Government to declare any arrangement as an Impermissible Avoidance Arrangement (IAA), which was set up with discerning where the main motive was obtaining a tax benefit. What transpired in the budget 2013 was government’s exercise to narrow down the scope of IAA to accommodate GAAR, and thus losing any steam of stringency, which investors were crying out loud that GAAR came along with. Moreover, if there is a commercial substance (“Intentionality”, “Significant on Business Risks, and/or Net Cash Flows”), then provisions of GAAR could be non-interfering, thus making the entire arrangement conducive for investments. If t…

FINANCING POWER IN INDIA: GENERIC TRENDS

FINANCING POWER IN INDIA: GENERIC TRENDSBanks and Infrastructure Finance Companies (IFCs) are the predominant sources of financing of power sector in India. Balance sheet size of many Indian banks and IFCs are small vis-à-vis many global banks. Credit exposure limits of banks and IFCs towards power sector exposure is close to being breached. Any future exposure seems to be severely constrained by balance sheet size, their incremental credit growth and lack of incentives to lend to power sector. The desirability and sustainability of sectoral exposure norms of the banks in the future may be examined in view of the massive exposure of the banks and projected fund requirements for the power sector. Further, any downgrade in the credit rating of power sector borrowers would adversely impact the ability of the major NBFCs viz. PFC and REC to raise large quantum of funds at a competitive rate from domestic as well as international capital markets. In such a scenario, the sources of funds ava…

उभरता संकट - बैंकों के बढ़ते एनपीए और घटती जवाबदेही - Hindi Version of "Unfolding Crisis: The Case of Rising NPAs and Sinking Public Accountability"

After the successful release of "Unfolding Crisis: The Case of Rising NPAs and Sinking Public Accountability" on 14th September, the Hindi version of it was released at the recently held 11th Biennial NAPM Convention in Patna held from 2-4 December, 2016. Please find the pdf for the Hindi document, "उभरता संकट - बैंकों  के बढ़ते एनपीए और घटती जवाबदेही"|

If you want to order hard copies of the Hindi report, then please drop a mail to himanshudamle@pfpac.net





पिछले दशक में, गैर-निष्पादित परिसंपत्तियों (एनपीए) या ​​डूबे लोन में अप्रत्याशित बढ़ोतरी  को अब औरनज़रअंदाज नहीं किया जा सकता है| मार्च 2007 से मार्च 2016 के अंतराल में भारतीय बैंकों के एनपीए मात्र 50,517 करोड़ रुपये से बढ़कर5,41,763 करोड़ रुपए तक पहुँच चुके हैं | इस अप्रत्याशित वृद्धि की सबसे खतरनाक बात,इसके सिर्फ छ: महीनों(सितंबर 2015 से मार्च 2016) के अंतरालमें एनपीए में 46% कीभारी बढ़ोतरी है| यह हमे डूबे लोन के उभरते संकट के बारे में आगाह करता है |इसका भयंकर दौर आना अभी बाकी है |

बैंकों, आरबीआई और वित्त मंत्रालय…

Public Sector Banks Lending, Demonetisation and RBI Norms: an adumbration

How far is it true that in the current scheme of things with stressed assets plaguing the Public Sector Banks on one hand and the recent demonetisation rendering bills of Rs. 500 and Rs. 1000 legally invalid has fuelled once again the debate of these public banks with excess deposits or surplus liquidity in their kitty are roaring to go on a relentless lending, thus pressurising the already existing stressed assets into an explosion of unprecedented nature hitherto unseen? Now, that is quite a long question by a long way indeed. Those on the civil sector spectrum and working on financials leave no stone unturned in admitting that such indeed is the case, and they are not to be wholly held culpable for India’s Finance Minister has at least on a couple of times since the decision to demonetise on 8th November aided such a train of thought by calling upon banks to be ready for such lending to projects, which, if I were to speculate would be under project finance and geared towards the cr…