PSU NEWS INDIA

Government is likely to infuse additional USD 1.8 billion (about Rs 11,500 crore) in public sector banks this fiscal over and above USD 1.2 billion earmarked in the Budget, Finance Secretary Rajiv Mehrishi said on Friday. "Will put additional USD 1.8 billion in PSU banks apart from USD 1.2 billion budgeted this year," he told reporters here. The government has earmarked Rs 7,940 crore in the Budget for recapitalisation of PSU banks for the current fiscal. Earlier this month, Mehrishi said the government intends to provide USD 9 billion (about Rs 57,000 crore) to public sector banks towards recapitalisation over the next two fiscals to meet global capital adequacy norms and for growth. Finance Minister Arun Jaitley had recently promised more capital infusion into public sector banks, saying there's "merit" in their demand for more funds over and above what was provided in the Budget. The government has already started assessment of capital requirement of p

United Bank of India has topped the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances. According to the data provided by the RBI to the Finance Ministry, United Bank of India's 21.5 per cent assets are either bad or have been restructured to save them from turning non-performing assets (NPAs). The other banks that have significant amount of gross NPAs and restructured loans include, Central Bank of India (21.30 per cent), Indian Overseas Bank (19.40 per cent), Punjab & Sind Bank (18.74 per cent) and Punjab National Bank with 17.94 per cent as on March 2015. State Bank of Patiala, Allahabad Bank, Oriental Bank of Commerce, UCO Bank and Dena Bank all have bad and restructured loans in excess of 15 per cent. The rising bad loans have been a major concern for the Reserve Bank as well as the government and steps are being taken to deal with it. Most of the restructured loans are fro

The Reserve Bank of India has said, corporates working with highly borrowed money are slowing the growth of bank lending and therefore preventing better monetary transmission as they may not be in a position to benefit from falling interest rates. The Bank said this would be due to their high levels of debt in the past few years. The half-yearly Financial Stability Report (FSR) released in Mumbai yesterday, says, RBI has reduced its short-term lending rate by 75 basis points since the start of this year but banks have passed on only up to 30 bps by reducing their base rates. It further states that while borrowing has increased, the ability to repay debt and debt servicing ability of the corporates has declined. The gross non-performing advances (GNPAs) ratio may increase to 4.8 per cent by September 2015 from 4.6 per cent in March 2015. The report states there is a need to go beyond capital requirement and adequacy as it may be a consideration with the public sect

The government will infuse capital in public sector banks in the next three to six months, Finance Minister Arun Jaitley said at Citi event. Jaitley has earmarked Rs 7,940 crore in the Budget for recapitalisation of PSU banks during the current fiscal. Citi had hosted Jaitley at an investor event where he spoke on the government's direction, approach to policy making, what has been done/lies ahead, and political, legislative, and economic challenges facing the country. Expressing his views on recapitalisation of PSU banks, the Citi report quoted the Finance Minister as saying that it was "likely in 3-6 months". The Minister is in the US on an official visit. After reviewing performance of government-owned banks on June 12 in New Delhi, Jaitley had promised more capital infusion into the banks, saying there's "merit" in their demand for more funds over and above what was provided in the Budget. In 2014-15, the government had injected Rs 6,990 crore in nin

Union Finance Minister Arun Jaitley has said that India's 7.5 per cent economic growth rate is not its best potential growth rate and there is restlessness in the Narendra Modi-led government to boost economic growth. Mr. Jaitley told #CNBC News Channel in New York that a series of reforms aided by a lot of investment particularly in infrastructure, improvement in manufacturing, agriculture will help push up India's economic growth.   The Union Finance Minister, who began his 10 day trip to the US, predicted an 8 per cent growth this year. He said the government will set higher GDP growth targets in the future. When asked about the concerns over what is termed as "renewed tax terrorism" in India, he said this is a term coined by him and it is his responsibility to make sure that it does not happen in India again. #PSU  #PSUNEWS

Delhi Police has made elaborate security arrangements for the celebration of International Yoga Day programme at Rajpath on Sunday. Talking to reporters Delhi Police Commissioner B S Bassi said, eighteen DCPs and thirty Companies of security personnel will be on duty on the occasion.   He said that local police is keeping an eye on the security arrangements and the area is being screened with the help of sniffer dogs and bomb disposal squads. He said, around 5,000 armed security personnel including Delhi policemen will be deployed to secure the yoga venue.

Union Finance Minister Arun Jaitley rang the closing bell at the New York Stock Exchange(NYSE) in New York and also toured the trading floor of the world's largest stock exchange. Mr. Jaitley, who began his 10-day trip to the US yesterday, was accompanied by a high-level business delegation from India.   He rang the customary closing bell at the NYSE at the close of trading day at 4 PM local time. Before ringing the bell, the minister met senior officials of the stock exchange and toured the trading floor where the Indian tricolor was displayed at various TV screens.

Prominent business leader Ratan Tata has expressed the need for some guidelines to monitor spending of the Corporate Social Responsibility funds by corporates. Speaking to reporters in Mumbai yesterday, Mr. Tata said there might be some companies which would be either wasting the money or siphoning in some form.   Tata Sons Chairman Emeritus said the CSR must come from one's heart. Talking about the e-commerce sector, Mr. Tata said it is a new trend in country’s commerce serving millions of people. The veteran industrialist said these young entrepreneurs and their startups must be given a chance to prove themselves.

The Centre has served notices to two NGOs run by social activist #Teesta Setalvad and her husband for alleged violations of the Foreign Contribution Regulation Act (FCRA). Sources said the notices were served by the Home Ministry two days ago following an on-site inspection of records and books of accounts carried out by the Ministry officials in April this year.   The Ministry has asked them to reply within 15 days. Sources said that during the probe it was found that a magazine run by their NGOs allegedly received foreign contribution. Under the FCRA, no foreign contribution can be accepted for journalistic and publication works. One of the NGOs had received foreign contribution of around Rs 1.18 crore from 2008-09 to 2013-14. According to the notice, more than 80 per cent of the funds was spent for legal aid while the NGO was registered for educational and economic purposes which is a violation of FCRA rules.

India today offered its expertise to Tanzania in development of its potentially rich natural gas sector. The two countries inked eight MoUs in various fields including Agriculture, Tourism and Hydrography to expand engagement in different sectors. The agreements were signed after delegation level talks between Prime Minister Narendra Modi and President of Tanzania Jakaya Mrisho Kikwete in New Delhi.   The MoUs signed include a loan agreement between Exim Bank and Tanzanian government on a line of credit for 268.35 million dollars for extension of Lake Victoria pipeline project.   Prime Minister Narendra Modi said ways to enhance cooperation in the maritime sector and ocean economy figured in the talks, noting that both the countries have a common interest in maritime security in the Indian Ocean region. Noting that Terrorism is a matter of concern for both countries, Mr Narendra Modi announced establishing of a Joint Working Group to strengthen cooperation in counter terrorism.   Te

Finance Minister Arun Jaitley said any decision which is retrospective and creates fresh liabilities is not acceptable except in very unusual circumstances. Allying concerns of American business community and investors, Finance Minister Arun Jaitley has said that any decision which is retrospective and creates fresh liabilities is not acceptable. "I have no difficulty in saying that any decision which is retrospective, except in some very unusual circumstances, which creates fresh liabilities is certainly not acceptable," he told a New York audience when asked about the concerns of the US business community with regard to retrospective taxes. "Therefore, ever since the present government has been formed, we said it when we were not in government and therefore we've lived up to our word, this government will not legislate anything that is retrospective," he said during an interaction at the Council on Foreign Relations, a think tank. "Many of us w

Bengaluru: As Karnataka Governor Vajubhai Vala faced flak over the expenditure on Raj Bhavan renovation, Karnataka government today justified the works saying it was a "routine exercise" that was set in motion much before the present incumbent assumed office.Vala had not demanded any renovation works at Raj Bhavan and the charges made against him were "not only false, but also baseless," the government said, a day after the Governor was embroiled in a controversy after the expenditure came into public domain in reply to an RTI query. Vala had landed in controversy over expenditure of Rs 4 crore on renovation of Raj Bhavan and another Rs 1.30 crore on air travel, including by special flights during nine months. The Congress government in Karnataka gave an approval on January 5, 2015 for taking up seven civil works at a cost of Rs 3 crore, besides electrical works worth Rs 1 crore, according to information furnished by the state public works department in reply t

RBI Governor Raghuram Rajan today said the central bank has not shut its door on rate cut and will take a view depending upon the evolving situation with regard to monsoon and external environment. Observing that he had cut benchmark lending rate by 0.25 percent earlier this week despite several risks, the RBI chief said that future policy action would be contingent on domestic and global factors. In the monetary policy, Rajan said, "We moved a little forward by saying we are going to cut rates despite these risks...based on how these risks evolve we will take a view. It's not a shut door, its a contingent statement". Yielding to demands of Finance Minister Arun Jaitley and India Inc, Rajan in the second bi-monthly monetary policy review on June 2 "front loaded" the repo rate cut despite worries of below normal monsoon and its impact on prices. "Growth is very weak, but we also have inflation mandate that we have to respect and we are trying our best in