The Indian budget every year has always been an eagerly awaited event. For many decades, the best minds in economics, finance, tax, business and industry throng the media house to analyze the provisions shared by the Financial Minister.
Sometimes major events completely disconnected may be data points for the plans of the different powers around the world. The challenge is to discern what purpose they serve? More critically, what are we moving towards?
When the US Ambassador threatened India's "Strategic Autonomy" policy over India's friendship with Russia - much more than meets the eye was at stake. Let us unpack how the Ukraine war has fundamentally changed the US and the world. And why are we here anyway?
Modi Government’s Insolvency and Bankruptcy Code (IBC) reform is at the heart of the fight against NPAs that the banks had amassed over UPAs 10 year rule. Even the new Chief Economist of IMF, Gita Gopinath, praised the GST and IBC reforms.
Tata Group’s Bamnipal Steel, (BNPL) – a wholly-owned subsidiary of Tata Steel – has completed the buy out of the debt ridden Bhushan Steel in a Rs 36,400 crores deal with a 72.65% stake. The impact of this was that the lenders almost recovered their principal amount.
“Lenders recovered almost entire principal loan of Bhushan Steel through Rs 36,400 crore transparent bid by Tata Steel and also got 12 per cent stake in the company,”
Now VTB-led Numetal has bid for the heavily indebted Essar Steel for Rs 37,000 crore in the second round of bidding! The other bankrupt corporates on the block are – Monnet Ispat and Energy for Rs 12,115 crore and Jaypee Infratech Rs 9,635 crores.
In total, the market is looking at Rs 1 lakh crores of NPAs to be resolved and returned to the creditors. Moneys that the banks had all but lost!
Until now, huge sums have already been recovered. Actually it is the coming together of many legal tools which has enabled such a situation.
In the fiscal ended March 2018, banks recovered Rs 40,400 crore worth of bad loans as against Rs 38,500 crore recovered in FY17. The various channels through which lenders recovered their bad loans include the Insolvency and Bankruptcy Code (IBC), SARFAESI Act, debt recovery tribunals (DRTs) and Lok Adalats.
There was a time when thousands of crores were lost by the banks and no one would care. Those losses used to be forever. This is first time in India’s banking history that moneys are coming back to the creditors and bank account holders for their benefit. Here are the banks which have the worst situations.
With this level of bank NPAs over the years look at how bad the situation is. How the government has handled the situation, the country may have a light at the end of the tunnel.
The Indian budget every year has always been an eagerly awaited event. For many decades, the best minds in economics, finance, tax, business and industry throng the media house to analyze the provisions shared by the Financial Minister.
When the US Ambassador threatened India's "Strategic Autonomy" policy over India's friendship with Russia - much more than meets the eye was at stake. Let us unpack how the Ukraine war has fundamentally changed the US and the world. And why are we here anyway?
This visit of India left me with many questions. Many observations and inputs from different people and sections. Food for thought that I have tried to contemplate on and make sense of. Sharing all that with you.
When you analyze the last 60 years of the economic miracles of Singapore, South Korea and Malaysia versus the continued impoverished Indian economy, you get very interesting lessons. Can Indians have the wherewithal in them to do in one generation so that the coming generations may rise?
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