The banking system in India is considered to be a rock solid foundation of its economy. Its ‘strength’ and ‘resilience’ was tested during the global financial crisis of 2008 when India survived the mayhem that gripped most parts of the world. However, a glance through the latest Financial Stability Report (FSR) would make us believe that cracks have started developing in this foundation. The Rs 81 lakh crores (US$ 1.3 trillion) banking industry is facing heightened risk. Gross non-performing assets (NPA) – a euphemism for bad loans – of 40 listed banks increased 37% to Rs 229,000 crores (US$ 37 billion) during the second quarter ending September, 2013. Besides, banks have restructured loans worth Rs 400,000 crores (US$ 64 billion)....
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Category: Infrastructure
Growth held hostage to bureaucratic red-tape
In a recent address to captains of Indian industry at FICCI, Mr Rahul Gandhi, Vice-President, Congress lambasted the ‘arbitrary’ powers enjoyed by an Environment Minister as major stumbling bloc in granting approvals to projects. In this backdrop, it was not just a coincidence that the Union Minister for Environment & Forest, Ms Jayanti Natarajan submitted her resignation though this was camouflaged as being necessaited by the need to enable her focus on party work. At a time when India is trapped in to a low GDP growth trajectory of less than 5%, projects worth Rs 10 lakh crores (US$ 160 billion) are pending clearance at the level of Minister despite approval already granted by environment appraisal panels. Of projects worth...
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