Harassment fears hold back PSU banks from lending to private sector
Wednesday, July 31, 2019, 8:13 PM
PM Modi's biggest challenge to kick-start a slowing economy in his second-term has become even more daunting because of the low investment by the private sector. GDP growth in the fourth quarter of the last fiscal year came down to a five year low of 5.8%, causing concerns among the policy makers. However, weak private investment had remained a challenge throughout PM Modi's first-term(2014-19).
RBI-Govt parleys: PCA norms could be eased for some better-off lenders
Monday, January 14, 2019, 7:34 AM
The finance ministry and the RBI are expected to soon work out some relaxation in PCA framework for stressed banks. This will be available only to those lenders that have shown considerable improvement in addressing bad loans. As-if-now, 11 state-run banks and one-private-lender are under the PCA framework, which prevents them from riskier lending and expanding branches, among other curbs, until they recover.