The consolidation exercise among public sector banks may not be an easy one with unions and employees voicing their concerns.
The consolidation exercise could bring down the number of public sector banks to about six from the current 27
Addressing a press conference at the conclusion of the second edition of the Gyan Sangam — a two-day offsite for public sector banks and financial institutions — on Saturday March 05,2016, Jaitley had said that consolidation in the banking sector was discussed at the meeting, and bankers themselves have suggested that an expert group should be set up soon to look into the issue. The panel will closely work with the Banks Board Bureau (BBB) to identify the right matches for consolidation. The BBB is set to be put in place by April 1, 2016.
Barely two days since finance minister Arun Jaitley announced the proposal to have “strong banks rather than numerically large numbers,” unions have threatened to resort to strikes if the process is kicked off
According to unions, if the government’s plan was to avoid “large number” of banks, why did it issue licences to companies to set up payments and small finance banks?
“The main problem that public sector banks is facing today is that of rising non-performing assets (loans that do not yield returns).. how will this get resolved by merging banks? The focus should be on recovery while ensuring that no further slippage is allowed,” CH Venkatachalam, general secretary, All India Bank Employees’ Association, told
NPAs for scheduled commercial lenders have crossed `8 lakh crore, and almost all banks have seen their profits drop sharply during the last quarter, especially with the Reserve Bank of India asking them to clean up their balance sheets by March 2017.
“There is no need to merge banks and even if this (issue) had to be discussed, all stakeholders need to be taken into confidence and no unilateral decision will be supported,” said Ashwani Rana, vice-president, National Organisation of Bank Workers, an affiliate of the Bharatiya Mazdoor Sangh
Note
4.18 crore pending from corporate defaulters as on January 2016
A total of Rs 4.18 lakh crore of taxes are pending from corporate defaulters as on January 2016, parliament was told on Tuesday March 01,2016
“The total amount of corporate tax demand pending for collection at the end of January 2016 is Rs.4,18,399 crore,” Minister of State for Finance Jayant Sinha told the Rajya Sabha in a written reply.
The top 50 defaulting companies account for Rs 22,903 crore of the total amount due for recovery, he added. The minister said focused action by field formations especially on high-demand cases is one of the strategies for effecting recoveries.
“Guidelines for tax recovery officers on recovery and dealing with stay petitions have been issued. Efforts for early disposal of appeals are also undertaken, especially in high-demand cases,” Sinha said.
Moreover, efforts of the assessing officer to recover the outstanding demand are regularly reviewed and monitored by their superiors, he added.
Databases like individual transaction statement and 360-degree profile generated by the department and those maintained by third party agencies like Financial Intelligence Unit (FIU-IND) have been made available for identification of assets for recovery, Sinha said.
10 Public Sector Banks account for half the NPA's
The Gross NPA's of the banking sector estimated at 5% of total loans and the overall stressed assets(including declared and potential bad loans)are estimated at 11%
Except for SBI and a few smaller banks,all listed public sector banks have gross NPA's in excess of their market capitalisation
As per RBI,an asset becomes NPA when it ceases to generate income for the bank.The banks need to declare a loan as NPA which remains overdue for more than 90 days
The consolidation exercise could bring down the number of public sector banks to about six from the current 27
Addressing a press conference at the conclusion of the second edition of the Gyan Sangam — a two-day offsite for public sector banks and financial institutions — on Saturday March 05,2016, Jaitley had said that consolidation in the banking sector was discussed at the meeting, and bankers themselves have suggested that an expert group should be set up soon to look into the issue. The panel will closely work with the Banks Board Bureau (BBB) to identify the right matches for consolidation. The BBB is set to be put in place by April 1, 2016.
Barely two days since finance minister Arun Jaitley announced the proposal to have “strong banks rather than numerically large numbers,” unions have threatened to resort to strikes if the process is kicked off
According to unions, if the government’s plan was to avoid “large number” of banks, why did it issue licences to companies to set up payments and small finance banks?
“The main problem that public sector banks is facing today is that of rising non-performing assets (loans that do not yield returns).. how will this get resolved by merging banks? The focus should be on recovery while ensuring that no further slippage is allowed,” CH Venkatachalam, general secretary, All India Bank Employees’ Association, told
NPAs for scheduled commercial lenders have crossed `8 lakh crore, and almost all banks have seen their profits drop sharply during the last quarter, especially with the Reserve Bank of India asking them to clean up their balance sheets by March 2017.
“There is no need to merge banks and even if this (issue) had to be discussed, all stakeholders need to be taken into confidence and no unilateral decision will be supported,” said Ashwani Rana, vice-president, National Organisation of Bank Workers, an affiliate of the Bharatiya Mazdoor Sangh
Note
4.18 crore pending from corporate defaulters as on January 2016
A total of Rs 4.18 lakh crore of taxes are pending from corporate defaulters as on January 2016, parliament was told on Tuesday March 01,2016
“The total amount of corporate tax demand pending for collection at the end of January 2016 is Rs.4,18,399 crore,” Minister of State for Finance Jayant Sinha told the Rajya Sabha in a written reply.
The top 50 defaulting companies account for Rs 22,903 crore of the total amount due for recovery, he added. The minister said focused action by field formations especially on high-demand cases is one of the strategies for effecting recoveries.
“Guidelines for tax recovery officers on recovery and dealing with stay petitions have been issued. Efforts for early disposal of appeals are also undertaken, especially in high-demand cases,” Sinha said.
Moreover, efforts of the assessing officer to recover the outstanding demand are regularly reviewed and monitored by their superiors, he added.
Databases like individual transaction statement and 360-degree profile generated by the department and those maintained by third party agencies like Financial Intelligence Unit (FIU-IND) have been made available for identification of assets for recovery, Sinha said.
10 Public Sector Banks account for half the NPA's
For
every Rs 100 parked in shares of public sector banks, investors carry
the burden of Rs 150 as bad loans, which have cumulatively ballooned to
Rs 4 lakh crore or 1.5 times the market value of these lenders.
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
For every Rs 100 parked in shares of public sector banks,investors carry the burden of Rs150 as bad loans,which have cumulatively ballooned to Rs 4 lakh crore or 1.5 times the market value of these lenders
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
For every Rs 100 parked in shares of public sector banks,investors carry the burden of Rs150 as bad loans,which have cumulatively ballooned to Rs 4 lakh crore or 1.5 times the market value of these lenders
The Gross NPA's of the banking sector estimated at 5% of total loans and the overall stressed assets(including declared and potential bad loans)are estimated at 11%
Except for SBI and a few smaller banks,all listed public sector banks have gross NPA's in excess of their market capitalisation
As per RBI,an asset becomes NPA when it ceases to generate income for the bank.The banks need to declare a loan as NPA which remains overdue for more than 90 days
For
every Rs 100 parked in shares of public sector banks, investors carry
the burden of Rs 150 as bad loans, which have cumulatively ballooned to
Rs 4 lakh crore or 1.5 times the market value of these lenders.
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
For
every Rs 100 parked in shares of public sector banks, investors carry
the burden of Rs 150 as bad loans, which have cumulatively ballooned to
Rs 4 lakh crore or 1.5 times the market value of these lenders.
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed adva ..
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