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Govt kicks off banking reforms,infuse...

Chalanachithram.com DB » New TF Industry Related » Archive through January 27, 2018 » Govt kicks off banking reforms,infuse 88,000 cr in PSU « Previous Next »
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Sodi
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Posted on Thursday, January 25, 2018 - 06:48 pm:       


Teluguhero:

You cant blame present govt cause politicians/rich people are taking advantage of loop holes in judicial system and judicial reforms are necessary if we want to punish corrupt politicians /business people.




inka power lo vundi emi peekinatlu?
Manchi manam podisinatlu,
Chedu pakkodi meeda tosesi

Nikkar Kathalu cheputham
 

Guriginja
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Posted on Thursday, January 25, 2018 - 05:30 pm:       


Sp1234:

So 88000cr is the money looted and being funded by public




ya 80k crore dobbesaru..bonds istharanta.
 

Guriginja
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Posted on Thursday, January 25, 2018 - 05:29 pm:       

80000 crores in bonds just 8k actual money. what a joke.....5th fail vadiki kuda artham kaavali adhi...may be the PM can ask his corporate friends to take these bods at a face value of just 1 rupee each...mosam cheyadame dyeyanga pettukunna mayala pakeer govt.
 

Sp1234
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Posted on Thursday, January 25, 2018 - 01:41 pm:       

So 88000cr is the money looted and being funded by public?
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 01:31 pm:       


Time_pass:

Next term seta lu kavali, Chennai lo Musalodini kalisadu, 2 weeks lo NO 2G SCAM




LOL thats your personal opinion because you don't like Modi. Just you need a Keyboard and its easy to blame anyone without proofs.


Time_pass:

Mari Malya gaadini Airport lo bayataki pampindi evaru?




You cant blame present govt cause politicians/rich people are taking advantage of loop holes in judicial system and judicial reforms are necessary if we want to punish corrupt politicians /business people.
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 01:19 pm:       


Dada:

So did the government let go Gali Janardhana reddy, Yedyurappa & Jagan because of the slowness of the Courts?
Did they take in Sukhram (Himachal telecom scam) into the party?
Closer home, why did they take Kavuri, Purandareswari, Rayapati into the party?




Yes every politician took advantage of loop holes in judicial system.I never said all BJP leaders are honest. Change must come from top to bottom.So far no allegations against Modi or his minsters.I think people will continue vote modi next time also if there are no scams or corruption in this term.
 

Time_pass
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Posted on Thursday, January 25, 2018 - 12:56 pm:       


Teluguhero:

.Many judges appointed are corrupt and loyal to one party.




Ippudu ee kotha Nikkar story techhara Bhyya Bhaktulu,
Mari Lallo ki siksha vesindi MAN JUDGE gara

Next term seta lu kavali, Chennai lo Musalodini kalisadu, 2 weeks lo NO 2G SCAM

Mari Malya gaadini Airport lo bayataki pampindi evaru?
 

Saarang
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Posted on Thursday, January 25, 2018 - 12:12 pm:       

Vijay Mallya ni MP chesindhi kooda nikkars ee
 

Dada
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Posted on Thursday, January 25, 2018 - 12:07 pm:       


Teluguhero:




So did the government let go Gali Janardhana reddy, Yedyurappa & Jagan because of the slowness of the Courts?
Did they take in Sukhram (Himachal telecom scam) into the party?
Closer home, why did they take Kavuri, Purandareswari, Rayapati into the party?

There are so many instances like this :-)
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 12:07 pm:       


Dada:

not change the appointment procedure of the Supreme Court judges.




No this is very important step.Many judges appointed are corrupt and loyal to one party.If judges are corrupt how can you expect better judgement ?
 

Dada
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Posted on Thursday, January 25, 2018 - 12:03 pm:       


Teluguhero:

Modi tried to change judges appointment system. But all supreme court judges unanimously rejected his proposal.




Be thankful that they stopped him. :-)

If the government wants faster processing, it needs to invest in more courts, more supporting staff,and digitize the proceedings....not change the appointment procedure of the Supreme Court judges.
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 12:00 pm:       


Dada:

Seriously....If there are so many scams before 2014, why was not one politician convicted?
Forget conviction - those behind bars have been let go after 2014!
Why was 2G proclaimed as a NO SCAM?




Its impossible to convict politicians under present judicial setting. Laloo convicted after so many years. Modi tried to change judges appointment system. But all supreme court judges unanimously rejected his proposal.
 

Kadapafan
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Posted on Thursday, January 25, 2018 - 11:52 am:       

useless thing to do, let the banks die, and invest this money in infra, create addnl jobs and automatically banking will thrive, albeit with better performing ones
 

Dada
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Posted on Thursday, January 25, 2018 - 11:48 am:       


Teluguhero:




And some of those on whom there were serious corruption charges are now in the BJP...
So either the charges were wrong or BJP is taking in corupt politicians!

antha endhuku - have you every thought - about the elections expenses about the BJP MPs, MINISTERS and MLAs from Andhra in 2014?
Why did they spend so much money?
PEJA SEVA ante KASI - DEAM MEDHA GOURAVAM......andhuke - they spent thier own money during elections ani maathram cheppoddhu..Please :-)
 

Dada
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Posted on Thursday, January 25, 2018 - 11:43 am:       


Teluguhero:




My dear friend....Allegations are the easiest thing to make....
https://twitter.com/SUBHADEEPTCS/status/918964167482183681

Seriously....If there are so many scams before 2014, why was not one politician convicted?
Forget conviction - those behind bars have been let go after 2014!
Why was 2G proclaimed as a NO SCAM?
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 11:36 am:       


One:

Nothing different from congress. Modi going in same ki nd politics




LOL just statements no proofs.So far no scams or corruption charges against Modi or his ministers.Media and opposition parties are eagerly waiting for scams or corruption under Modi govt. I hope Modi will never give a chance to them.He ruled Gujrat 13 years without scams/corruption.
 

One
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Posted on Thursday, January 25, 2018 - 11:22 am:       


Rajusk:


UPS scam results came out in second session of upa. Nothing different from congress. Modi going in same ki nd politics
PK fan
 

Saint
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Posted on Thursday, January 25, 2018 - 11:22 am:       


Rajusk:



BJP time lo ichina loans list edaina unda..or atuvanti MPs evaraina unnara

just asking about the likes of Lagadapati..and other MPs from AP in Congi era




adani ki 1bn credit line by SBI marichipoyara?backout ina kooda tarvatha?
ilantivi manaki telekunda enni vuntayooo....ala miss ina valla kosamega ippudu ishtundi..
 

Rajusk
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Posted on Thursday, January 25, 2018 - 11:18 am:       


Saint:

ana MP/MLA/other lobbyists companies ki fresh loans ivvandi.




BJP time lo ichina loans list edaina unda..or atuvanti MPs evaraina unnara

just asking about the likes of Lagadapati..and other MPs from AP in Congi era
 

Saint
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Posted on Thursday, January 25, 2018 - 11:16 am:       

yeah 2019 elections funding...mana MP/MLA/other lobbyists companies ki fresh loans ivvandi...elections lo gelichaka inko round recap cheyyochu
 

Chatrapathi
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Posted on Thursday, January 25, 2018 - 11:10 am:       

ivala almost anni bank shares nastapoyayi...
 

Teluguhero
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Posted on Thursday, January 25, 2018 - 11:07 am:       

http://www.livemint.com/Industry/3HbxxnbDhmB4P1g83OBXII/Govt -to-infuse-over-Rs8800-crore-in-20-PSU-banks-as-part-of.html

Govt kicks off banking reforms, to infuse Rs88,000 crore in PSU banks by March
PSU banks will be capitalised in 2017-18 through a mix of recapitalisation bonds (Rs80,000 crore) and direct infusion from budgetary allocations (Rs8,139 crore)

New Delhi/Mumbai: The government on Wednesday formally kicked off banking reforms, linking Rs88,000 crore of capital infusion in ailing public sector banks with a set of performance metrics.

PSU banks will have to revamp their lending practices, especially in advancing loans to big businesses and in consortium lending, monetize non-core assets, rationalize overseas branches, embrace technology and move to recover loans that have turned bad, said financial services secretary Rajiv Kumar.

The strategy is to provide a lifeline to banks struggling under the legacy of bad loans so that they can once again resume commercial lending—and revive the investment cycle in the economy.

Addressing a press conference, finance minister Arun Jaitley said the need for banking reforms is independent of the government’s stated objective of encouraging consolidation in the banking sector.

“We are setting up an institutional mechanism to ensure what has happened in the past is not repeated. It is the government’s responsibility to keep state-run banks in good health and ensure they follow the highest standards of corporate governance,” Jaitley said.

Public sector banks will be capitalised in the current fiscal year through a mix of recapitalisation bonds (Rs80,000 crore) and direct infusion from budgetary allocations (Rs8,139 crore). In addition, banks have raised more than Rs10,000 crore so far and will raise more in the coming months from the market, taking the total recapitalisation to over Rs1 trillion this fiscal.

The recapitalisation bonds will be of a tenor of 10-15 years and will be issued once the boards of banks commit to the banking reforms. The recapitalisation bonds will not impact the fiscal deficit this year, said Subhash Chandra Garg, secretary, department of economic affairs.

However, servicing the bonds would reflect in the future liability of the union government, Garg said. It will be a cash-neutral arrangement and the bonds will be priced at the average three-month yield of the corresponding government security plus spread.

IDBI Bank Ltd and Bank of India, which have been placed under prompt corrective action (PCA) by Reserve Bank of India, will receive the highest capital infusion from the government at Rs10,610 crore and Rs9,232 crore, respectively.

State Bank of India and Punjab National Bank, which are not under the PCA framework, will get Rs8,800 crore and Rs5,473 crore, respectively, as the government looks to support their growth.

PCA framework acts as an early warning exercise and facilitates corrective measures by banks to restore their financial health.

Unveiling the action point for banking reforms, the government said banks should have a minimum of 10% exposure in big consortium loans to ensure a greater say; at present, small banks have very little exposure and, consequently, little or no influence.

Banks have also been asked to tie up with specialized monitoring agencies for credit exposure above Rs250 crore. Proper due diligence has also been suggested while sanctioning loans. They have also been asked to scrutinize group balance sheets and ring-fence cash flows.

Banks have been asked to create a separate stressed asset management vertical to focus on recovery of loans. The banking industry is estimated to have more than Rs10 trillion of stressed loans.

Improving customer experience and easy loans for micro, small and medium enterprises (MSMEs) are also among the requirements.

Banks said the capital will help in funding growth and meeting regulatory requirements and has been allocated based on the provisioning requirement for bad loans and the board-approved growth policy that has been shared with the government.

“This capital will help us grow our loan book mainly in retail, agriculture and MSME sector, and meet regulatory capital requirements. Some amount will also go as provisioning for ageing of NPAs (non-performing assets). But that will be offset by the resolution we are expecting in the NCLT (National Company Law Tribunal) cases,” said R. Subramaniakumar, MD & CEO at Indian Overseas Bank.

List of PSU banks and their capital infusion

IDBI Bank Ltd: Rs10,610 crore

State Bank of India: Rs8,800 crore

Bank of India: Rs9,232 crore

UCO Bank: Rs6,507 crore

Punjab National Bank: Rs5,473 crore

Bank of Baroda: Rs5,375 crore

Central Bank of India: Rs5,158 crore

Canara Bank: Rs4,865 crore

Indian Overseas Bank: Rs4,694 crore

Union Bank of India: Rs4,524 crore

Oriental Bank of Commerce: Rs3,571 crore

Dena Bank: Rs3,045 crore

Bank of Maharashtra: Rs3,173 crore

United Bank of India: Rs2,634 crore

Corporation Bank: Rs2,187 crore

Syndicate Bank: Rs2,839 crore

Andhra Bank: Rs1,890 crore

Allahabad Bank: Rs1,500 crore

Punjab and Sind Bank: Rs785 crore

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