State Owned Banks Fear Rising NPA’s
The Finance Ministry expressed dissatisfaction with public sector banks yesterday and the level of credit delivery towards small and medium enterprises. The Ministry asked state owned banks on Monday to increase their lending to these types of firms as well as increase lending for automobile and housing. Banks are reluctant to comply however fearing deterioration in credit quality if they cede to the governments wishes.
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RBI Issues Report On Banking In India
The RBI, India’s Central Bank issued a report last Wednesday suggesting the country, with its strong drivers for economic growth, may escape the works of the global credit crisis. The report titled “Trend and Progress of Banking in India, 2007-08” suggests that once the global situation stabilises, India will return to the high growth rates it has been accustomed to over the last decade.
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Indian Government Announces Stimulus Package
The Congress led Central Government announced a Rs 20,000 crore or US$ 4 billion economic stimulus package on Sunday as it bolstered efforts to support an economy whose growth rate is suffering as a result of a global economic slowdown.
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India Should Not Roll Back Fuel Price Hikes
The Union Government issued Rs 22,000 crores (US$ 4.4 billion) in oil bonds on behalf of the three oil marketing companies at the start of November, largely to compensate them for selling fuel at below production and acquisition costs.
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