National
Putting all resources to resolve NPAs: Jaitley
New Delhi, Jan 4 (IANS) Noting that it was public investment that had enabled the country to consistently achieve over 7 per cent growth at a time of dismal private investment, Finance Minister Arun Jaitley said on Thursday the government is bringing all possible resources to bear in order to resolve the issue of banks’ bad loans.
Participating in a short-duration discussion in the Rajya Sabha on the state of the economy, Jaitley said that it was reckless lending by banks during the boom years in the previous UPA government that had led to accumulation of such huge non-performing assets (NPAs), or bad loans, in the Indian banking system.
“As regards the banking system, we are trying to put all our resources into it (NPAs issue),” he said.
“Industry doesn’t pay back the banks… so this bailout that we’re doing with the taxpayers’ money is not an ideal situation.”
Referring to the Rs 2.12 lakh crore recapitalisation plan for state-run banks approved by the government in October, the Finance Minister said the objective is to ensure that the lenders’ ability to support growth is not impacted by their combined NPAs which have crossed the staggering level of Rs 7.5 lakh crore.
“Reckless lending without proper risk management has affected the banks capacity to support growth,” he said, referring to the high-growth period after 2008 when the massive lending by banks is now being reflected in their accumulated bad loans and through heavily leveraged corporate balance sheets.
“This is another reason which has contributed to the reduced private investment,” he added.
Last week, Jaitley told the Lok Sabha that banks and creditors would need to take a “haircut” on their bad loans, even as defaulting promoters could make their businesses operational again by paying the outstanding interest on the loan.
A haircut signifies lenders accepting a lower than market value for the asset in question for a resolution of the NPA.
In this connection, Jaitley said the government had brought in the Insolvency and Bankruptcy Code in 2016 to institute a time-bound insolvency resolution process.
According to the American rating agency S&P-owned Crisil, Indian banks will need to take a haircut of up to 60 per cent on their bad loans to resolve the issue of NPAS, which is holding up higher economic growth.
The government 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. On the other hand, it has approved a major recapitalisation plan for state-run banks.
–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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