The Indian banking industry has been suffering from an extensive Non-Performing Assets (NPA) crisis.
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?
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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.
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\".
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.
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.
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.\"
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.
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.
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.
UK Budget
There _ he latest UK budget represents a departure from previous fiscal documents.
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.
