75 Million Bank Accounts For India’s Poor—And Counting

Reuters/Vivek Prakash   The Pradhan Mantri Jan DhanYojana (PMJDY) was launched by Prime Minister NarendraModi on 28th August, 2014 with the objective of providing India’s poor with financial services. PMJDY will provide savings bank accounts, loans, insurance and pensions.   In addition, beneficiaries will get RuPay debit card with an in-built accident insurance cover of … Continued

Needed, A Clean-Up Drive For Bank NPAs

As Prime Minister Narendra Modi’s Government sets the financial agenda for the coming term, one area for action might be the balance sheets of public sector banks.   Gross non-performing assets (GNPAs) of 10 leading public sector banks added up to Rs 1.51 lakh crore at the end of March 2014.   This is 32% … Continued

Two More Banks Take Total to 91

The Reserve Bank of India (RBI) has issued ‘in-principle’ approvals to infrastructure lender IDFC and micro finance institution Bandhan Financial Services to start new banks in the country.   The two entities will be the latest to join the private sector bank club and have been given 18 months to meet the conditions set by … Continued

Big Borrowers, Big Headache

Banking regulator Reserve Bank of India (RBI) is worried about the increase in bad loans in the sector. RBI came out with new guidelines to deal with non-performing accounts (NPAs), which would mean more pain for promoters of defaulting companies. RBI has reason to worry – almost 5% of the outstanding loans of the Indian … Continued

India’s Bad Loan Problem Worsens, Up 35% In Just 9 Months

  During his vote-on-account speech, Finance Minister P Chidambaram dwelled mostly on the achievements of the United Progressive Alliance (UPA) Government including the high growth rates achieved over the past decade.   However, it is clear, even to a casual observer, that growth in India has slowed down quite perceptibly and business confidence is down. … Continued