National
Recapitalisation will substantially improve situation: Arun Jaitley
New Delhi, Oct 25 (IANS) A day after announcing major capital infusion for public sector banks, Finance Minister Arun Jaitley said this will substantially improve the situation.
“I think this will substantially improve the situation. In the management of the economy of the country, there is no easy day and our own experience of the last three-and-a-half years has been that we have been continuously taking up challenges, one after the other, taking various steps, reform measures which respond to the situation and many of them worked well,” Jaitley told ET Now in an interview.
In a stimulus package aimed to boost flagging economic growth, create jobs and increase credit flow, the Union Cabinet on Tuesday approved a Rs 2.11 lakh crore recapitalisation plan for state-run banks and massive road infrastructure investment of nearly Rs 7 lakh crore over five years.
Of the support to banks, Rs 1.35 lakh crore will be raised through recapitalisation bonds and the remaining sum through budgetary support and market borrowings.
The finance minister said: “Our whole programme for giving an impetus to infrastructure creation for encouraging FDI (foreign direct investment), for bringing transparency in economic and commercial decisions, have been rewarded very well. But then there are problems and one of the key problems was what happens to the banks and the manner in which the banking system was being run during the two UPA governments, particularly during the second UPA government, leaves a lot to be desired.”
Talking about bank lending Jaitley said during the boom period and somewhat thereafter, there was indiscriminate lending as though there is no tomorrow. And the “risk mitigation factors” were not really factored in.
“I regret to say that the central bank also looked the other way. And then by just restructuring loans, you were evergreening the problem. And all this was being allowed. It is only in March 2015 that people woke up to the problem that you have lent so much, you cannot really sweep the problem under the carpet.
“The banks came out with the truth as to the real number of stressed assets and then of course the central bank came out, somewhat with very strict provisioning norms and corrective action with regard to the banking system started. And that is the legacy of the NPA (non performing asset) problem,” he added.
The finance minister said the government’s decision of demonetising high value notes last year November has brought in a lot of CASA deposits to the banks.
“Their current accounts, savings accounts are full of money. But in order to lend that money, the banks must have capital adequacy. How do you get the capital? Do you give it straight from the budget? Do you get the Reserve Bank to part with some of its reserves or do you ask the banks to raise money from the market or do you resort to the recapitalisation bonds which in turn will add to the government debt and that debt has to be serviced?
“In the last few months, we have been working on it. Finally, we came out with our response to the situation where a large capital of Rs 2.11 lakh crore is being given to the banks,” he added.
The minister added that this recapitalisation has to be accompanied by a series of banking reforms “which we will finalise”.
“I am sure once the money gets inducted into the banks, their ability to lend will substantially improve and it is our priority that the SMEs should get the priority because large businesses can resort to global funding.”
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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