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Ficci joins chorus for privatising state-run banks
New Delhi, Feb 19 (IANS) Noting that recapitalisation of state-run banks over the last decade has had little impact on improving their health, industry chamber Ficci on Monday called for their privatisation in the interest of creating “a dynamic banking sector” in the country.
The Federation of Indian Chambers of Commerce and Industry’s (Ficci) demand follows another industry body Assocham’s call on Sunday for the government to surrender its majority control of public sector banks (PSBs) in the light of the massive over Rs 11,300 crore ($1.8 billion) scam allegedly involving jeweller Nirav Modi that has hit state-run Punjab National Bank.
“Ficci recommends privatisation of PSBs. Recapitalisation in the last 11 years has had limited impact in improving the health of public sector banks,” the industry body said in a release here.
“The public sector banks, which constitute almost 70 per cent of the Indian banking system, are saddled with burgeoning stressed assets.”
“The government has already injected over Rs 2.6 lakh crore in the PSBs through recapitalisation in the last 11 years, which has had limited impact in improving the health of public sector banks thus far,” Ficci President Rashesh Shah said in a statement.
“Recapitalisation alone is not a permanent solution and will not be effective unless the inherent issues related to governance, productivity, risk management, talent, customer service, among others, are resolved,” he said.
“Given the continuous pressure on the government finances on account of the weak performance of the banks, privatisation would reduce the drain on the exchequer and the money saved could be used for developmental schemes and programmes,” he added.
Besides the Rs 1.45 lakh crore earmarked for recapitalisation during the ongoing and the next fiscal, PSBs have received around Rs 1.15 lakh crore equity between 2010-11 and 2016-17. During the same period, PSB profits amounted to Rs 1.8 lakh crore.
Most government-owned banks reported combined losses during the last two fiscals on account of the provisioning made for their massive accumulated non-performing assets (NPAs), or bad loans.
The accumulated NPAs in the Indian banking system have crossed a staggering Rs 8 lakh crore, with PSBs themselves accounting for over Rs 7 lakh crore of bad loans.
The Centre has embarked on a two-pronged strategy in this regard. On the one hand, it has brought in the Insolvency and Bankruptcy Code which provides for a time-bound insolvency resolution process. The Reserve Bank of India has already identified 12 accounts adding up to 25 per cent of the NPAs for insolvency proceedings.
On the other hand, the Union Cabinet, in October, approved a Rs 2.11 lakh crore recapitalisation plan for PSBs.
Meanwhile, Chief Economic Advisor (CEA) Arvind Subramanian has also advocated more private participation in public sector banks.
Speaking at an event in Chennai on Saturday, Subramanian said while the government was going for recapitalisation of PSBs, the scrutiny, monitoring and disciplined deployment must be ensured only through greater private participation in banks.
According to him, there should be less public lending to the private sector and the mode to achieve that is to have higher private participation in the banking sector.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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