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View: How the government can truly make India’s state-run banks efficient just like their private sector peers

View: How the government can truly make India’s state-run banks efficient just like their private sector peers

Finance
Budget 2021 has finally made long-awaited policy pronouncements of a reformist nature in the banking and financial sector. Governments are prone to make announcements that catch headlines, but soon fade away with only half-hearted implementation. One says this with the hindsight of the declaration of divestment of the Industrial Development Bank of India (IDBI) in 2015 and later of Air India. But genuine enthusiasm arises from the fact that after declaring that GoI would privatise public sector banks (PSBs), set up an asset reconstruction company (ARC) and establish a development finance institution (DFI) among others, the administration has started to take steps to implement these. It is encouraging that the finance ministry has already sought timelines from ministries on getting the deci...
Banking sector was hurt in the name of aggressive lending a decade back: PM Modi

Banking sector was hurt in the name of aggressive lending a decade back: PM Modi

Finance
PM Narendra Modi on Friday said the government has a clear vision for the financial services sector and is taking steps to make it vibrant, proactive and strong and the top priority is to ensure trust and transparency for both the depositor and investor. PM Modi said the sector was hurt 10-12 years back due to aggressive lending and steps been taken under the current regime to take the country out of non-transparent credit culture. "Today instead of brushing NPAs under the carpet, we have made it mandatory to report even NPA of one day," he added. The Prime Minister was addressing a webinar on Budget 2021 announcements regarding the financial services sector. Watch now. (Text: PTI)Let's block ads! (Why?) Banking/Finance-Industry-Economic Times
Treasury scraps £95,000 cap on public sector pay-offs

Treasury scraps £95,000 cap on public sector pay-offs

Business
Getty ImagesThe government is scrapping a cap of £95,000 on public sector redundancy payments, after court action by trade unions.Ministers say they are looking for new ways to tackle excessive pay-outs for higher earners. Those who have left their jobs since the change was introduced in November should be reimbursed the shortfall.A Treasury spokesman said the cap was withdrawn due to "the unintended consequences" it had on employees. They added that the government remained committed to bringing forward proposals to tackle unjustified exit payments. What are my rights if I am made redundant?The cap came into force last November, with the aim of ensuring exit payments represented value for money and were fair to taxpayers. But unions had fought the move, seeking a judicial review into the...
Aviation sector demands urgent help as COVID restrictions tightened

Aviation sector demands urgent help as COVID restrictions tightened

Business
Britain's beleaguered aviation industry has issued a fresh plea for state help as the government set out plans to quarantine travellers from 33 countries in hotels and tightened COVID testing rules for all arrivals.Travel shares fell after the announcement from Health Secretary Matt Hancock dampened hopes for a return to normality in time for the summer holiday season. The airline Jet2 said it was extending the suspension of its flights, caused by coronavirus restrictions, to 14 April. Image: Revenues in the sector have been almost wiped out Hours earlier, holiday giant TUI said it had taken more than 2.8 million bookings for this year's summer period, despite official advice that it was too soon to plan getaways over the summer.Detai...
Infra sector firms want renegotiation of EPC contracts amid rise in input cost; lenders oppose

Infra sector firms want renegotiation of EPC contracts amid rise in input cost; lenders oppose

Finance
Kolkata: While several private companies in the infrastructure space are raising demand for renegotiation of EPC contracts amid rise in input costs, the World Bank as well as the country's largest commercial lender State Bank of India have voiced their opposition. Concerns have also been raised at different fora by other lenders about the likely impact on the already stressed asset quality and the appetite for lending to core projects if existing contracts are not honoured. "The contract is sacrosanct. It's the contract against which we provide finance," State Bank of India general manager for project finance Sanjay Kumar Singh said Friday. He said that banks have been taking this up with the government at different platforms saying that re-negotiation may become a challenge for them. Pri...