Deal with bad loans to get Indian economy up and running
cheap adidas Most economists would agree that India growth story has taken a pause cheap jordans women’s shoes a rather long pause. cheap air jordans The past two quarters have been a washout cheap air force , largely because of cheap real retro jordans for sale demonetisation, and the outlook for the remaining part cheap jordans size 6 of this calendar year is overshadowed by disruptions caused by cheap jordan 11 the introduction of the goods and services tax (GST). real jordans for sale online cheap There has been some improvement in broader economic indicators, such as industrial production and exports, but not enough to suggest the worst is behind us. cheap adidas
cheap Air max shoes More than the impact of demonetisation and GST, what keeps cheap jordans 2014 the economy from turning around fast is the sharp erosion in cheap jordans but real the ability of the banks in the country to lend for growth. A sustained accumulation of bad loans, cheap air jordans for sale online or non performing assets, which now stand at an alarming 9.6% of total lending, has left most banks, especially in the cheap jordans 8 public sector, shy of buy cheap jordans financing new projects. cheap Air max shoes
cheap jordans online Underscoring the jordan retro 5 cheap seriousness of the situation, the government brought an cheap jordans for toddlers ordinance in May to empower the Reserve Bank of India (RBI) to intervene and initiate insolvency process on stressed assets Last week www.topjordanscity.com , the lower house of Parliament replaced the ordinance with an amendment to the Banking Regulation Act, in a move seen as providing political cover to the central bank in its actions against erring lenders and cheap jordan sites loan defaulters. The RBI has already asked banks to initiate bankruptcy proceedings against 12 large loan defaulters, accounting for a quarter of nearly Rs 9 lakh crore cheap but real jordans for sale that the banking system has piled up in bad loans. More cases will follow in the months to come. cheap jordans online
cheap jordans china These actions have raised hopes that the NPA hit banks, mostly state owned, will return to good health and provide the impetus that the economy needs to climb back to a high growth trajectory. It will be a long haul, however. And there are many imponderables. cheap jordans china
cheap jordans shoes Although the RBI is empowered to initiate insolvency resolution, there is nothing that stops a defaulter from going to court to challenge the cheap jordans discount central bank action. It will take some time before the cheap jordans online mens ongoing bankruptcy proceedings set some cheap jordans for sale near me precedents that can help pre empt any defaulter from challenging the lender actions. cheap jordans shoes
Cheap jordans It is also imperative that the central cheap jordans under 100 bank and the lenders move fast in initiating insolvency resolution. Banks run the risk of recovering less and less of their money as the value of the assets created with their loans falls with every passing day. Cheap jordans
cheap jordans free shipping The other challenge facing the PSU banks relates to the capital they have. As they get down to cleaning up their balance sheets, some of their capital will get depleted. Already, the capital adequacy ratio in the case of several PSU banks has fallen below the internationally prescribed norms. The government has indicated it would infuse new capital, but has yet to make a firm commitment on the quantum and timing. cheap jordans free shipping
cheap air jordan That said, the current actions are tailored to address the stock of bad debt, but not the causes behind the generation of bad loans. A three part series in Hindustan Times, beginning Tuesday, offers a broader explanation on how India banking system ended up with such a big pile of bad loans. Why did the companies borrow so heavily? Why did the banks keep lending to defaulters? Where and how borrowers over leveraged and lenders made wrong calls? Answers to these questions put the spotlight on issues of governance and credit discipline at banks that must be addressed to find a more sustainable solution to the current crisis. cheap air jordan
cheap jordans in china Last, but not the least, as cheap jordan 10 the central bank works to put the banking system back on track, the government needs to act on reviving fortunes of those sectors where most of the bad loans accumulated power, telecom, construction, textiles and steel. These sectors are crucial to fueling economic growth and creating jobs, and, at this point, these are no go zones for bankers. That must change. Otherwise, when the banks eventually return to good health they won have enough borrowers to lend to cheap jordans in china.
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