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India has not lived up to high banking standards: Goyal
Mumbai, July 3 (IANS) India has not lived up to the high expectations and standards required of the banking system and the current “trying times” had finally forced a recognition of the non-performing assets (NPA), or bad loans, situation and the need for a move to resolve the problem, acting Finance Minister Piyush Goyal said on Tuesday.
Addressing the State Bank of India (SBI) Banking and Economics conclave here, Goyal said that recommendations of the panel headed by Punjab National Bank Chairman Sunil Mehta for creating independent asset management companies (AMCs) and steering committees for faster resolution of NPAs, which was accepted by the government on Monday, is a “win-win situation” for all stakeholders concerned.
“Banking will never be the same again…it has moved from one end of the spectrum to another, and not necessarily in glorious fashion,” he said.
“Collectively we have not lived up to the high expectations required of banking. Have we as a banking system remained abreast with new technologies and maintained high standards of monitoring and accountability?”
The Minister cited the example of the Core Banking Solution technology that had been adopted in a “half undone” manner.
“The (NPA) cases beyond redemption should go for liquidation to the NCLT (National Company Law Tribunal) under the IBC (Insolvency and Bankruptcy Code),” he said.
“The other cases should be resolved by a transparent and accountable mechanism overseen by an independent third party steering commitee.”
The Sunil Mehta panel has recommended the creation of an AMC under the framework of an alternative investment fund (AIF) to deal with NPA cases of more than Rs 500 crore.
There are about 200 such accounts, each owing more than Rs 500 crore to banks, with a total exposure of about Rs 3.1 lakh crore.
Under this approach, independent AMCs would be set up, while AIF would raise funds from institutional investors. Financial institutions will enter into an inter-creditor agreement to authorise the lead bank to implement a resolution plan in 180 days.
The lead bank would then prepare a resolution plan including empanelling specialitsts and industry experts for operational turnaround of the asset.
The committee has also suggested an asset trading platform for both performing and non-performing assets.
Besides, it has also suggested a plan for dealing with bad loans up to Rs 50 crore, which would be dealt with under the SME Resolution Approach (SRA) using a template supported by a steering committee. The resolution should be non-discretionary and completed in a time-bound manner within 90 days.
–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.