New Problems Beleaguer Banking Industry
BUSINESS ECONOMICS|July 16-31, 2019

The Indian banking industry has been suffering from an extensive Non-Performing Assets (NPA) crisis.

Kishore Kumar Biswas 
New Problems Beleaguer Banking Industry

The Public Sector Banks (PSBs) are hard hit but private banks are also not completely immune from it. It is claimed that the PSBs and private banks are not on the same plane. The PSBs are expected to perform many functions that are related to the development of the country. The private banks, on the other hand, are more profit-oriented. PSBs have been ahead of private banks in cases of financial inclusion, implementation of Jan Dhan Yojna, priority sector loans, and in many other cases.

Beginning of NPA

Infrastructure development is considered as a nation building programme. But in this area, the role of private banks has been restrictive. It is known that the biggest contributory factor of NPA has been related to the infrastructure loans of banks. In the first phase of the Manmohan Singh government, the Indian Ministry of Finance miscalculated the growth projection of GDP. It was thought that India will be able to experience double digit growth of GDP for many years and proper infrastructure was needed to achieve this. So, the government pressurised banks to make loans on infrastructure. Generally, banks lend on an operating basis and these loans are not long term loans.

A large number of high cost infrastructure projects got stalled during the late years of the Manmohan Singh government, which included road and power projects. The unavailability of required land due to various factors like environmental clearances or suitable compensation to evicted people was some of the responsible factors. Land acquisition has been a persistent problem of the Indian economy. Under the Indian Constitution, states were granted the powers to enact (and implement) land reforms in 1949. However, this autonomy also created significant variation across states in terms of the number and types of land reforms that have been enacted and

Are the PSBs short of quality man-power?

هذه القصة مأخوذة من طبعة July 16-31, 2019 من BUSINESS ECONOMICS.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة July 16-31, 2019 من BUSINESS ECONOMICS.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESS ECONOMICS مشاهدة الكل
Deposit shortage: challenges facing India's banking ecosystem
BUSINESS ECONOMICS

Deposit shortage: challenges facing India's banking ecosystem

In any macroeconomic framework, the household sector plays a critical role as a driver consumption, savings, and overall economic activity.

time-read
4 mins  |
November 01 - 30, 2024
India's future dreams in Semiconductors & AI
BUSINESS ECONOMICS

India's future dreams in Semiconductors & AI

A midst the gloom of the RG Kar affair or the Tirupati laddu scam or even the continued terrorist attacks in Jammu & Kashmir, even after the completion of the first general election in the state, we find hope and encouragement when the founder of Nvidia, Jensen Huang, in his recent visit to India says \"India will be a gigantic opportunity for us\".

time-read
2 mins  |
November 01 - 30, 2024
The Ramayana: Justice and Modern Man
BUSINESS ECONOMICS

The Ramayana: Justice and Modern Man

Consisting of Twenty-Four Thousand worthy Sanskrit verses, the Ramayana is one such epic, which provides a pathway to one committed to justice to establish himself as an ideal human being by following the exemplary life of its hero.

time-read
6 mins  |
November 01 - 30, 2024
Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India
BUSINESS ECONOMICS

Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India

Sardar Vallabhbhai Patel was instrumental in unifying the princely states to form the Union of India.

time-read
5 mins  |
November 01 - 30, 2024
Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development
BUSINESS ECONOMICS

Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development

The Royal Swedish Academy of Sciences has awarded the Memory of Alfred Nobel to three US-based economistsDaron Acemoglu, Simon Johnson, and James A. Robinson\"for their studies on how institutions are formed and affect prosperity.\"

time-read
2 mins  |
November 01 - 30, 2024
Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata
BUSINESS ECONOMICS

Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata

Kolkata's underground water crisis is becoming a serious issue, driven by rapid urbanization and the construction of high-rise buildings.

time-read
4 mins  |
November 01 - 30, 2024
Tourism Industry positively impacted by the festive season
BUSINESS ECONOMICS

Tourism Industry positively impacted by the festive season

Diwali transforms streets into a spectacle of festive lights, Diwali transforms streets into olis, and families gearing up for grand celebrations.

time-read
2 mins  |
November 01 - 30, 2024
RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy
BUSINESS ECONOMICS

RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy

For over a year, the Reserve Bank of India (RBI) has taken a firm stance against inflation, raising interest rates by 250 basis points between May 2022 and February 2023 in response to post-pandemic price pressures.

time-read
1 min  |
November 01 - 30, 2024
UK Budget
BUSINESS ECONOMICS

UK Budget

There _ he latest UK budget represents a departure from previous fiscal documents.

time-read
2 mins  |
November 01 - 30, 2024
Han Kang's Historic Nobel Prize Win
BUSINESS ECONOMICS

Han Kang's Historic Nobel Prize Win

The 2024 Nobel Prize in Literature has been awarded to T South Korean writer Han Kang, 53, known for her works including The Vegetarian, The White Book, Human Acts, and Greek Lessons.

time-read
2 mins  |
November 01 - 30, 2024