- SBI chairman Arundhati Bhattacharya on the current economic status and its future in India:
- Bad loans may come down due to:
- Increase in demand, capitalization and revenues due to rise in GDP.
- Improvements in capital markets that has allowed companies to de-leverage.
- An 80% deficiency is predicted in monsoons, but even if they arrive in early July and not August, it will be alright.
- The impact will be on farm loans, but there are rules for ‘Anvari’ (drought) where the loan for one quarter gets rolled into the next quarter and gets converted to into a term loan repayable in three years.
- However, farmers are already anticipating a waiver and have stopped paying.
- Despite tension in Iraq, the market looks upbeat, but much hard work is necessary. SBI has made some specific recommendations to the sector,
- Provision for making loans for a longer period by raising long-term deposits.
- Make deposits more attractive by introducing tax deduction at the source.
- Forward and backward linkages for projects that are stuck or are nearing completion.
- SBI has incorporated technology to increase productivity,
- Tax payments are on electronic platform.
- Cash-recycler ATMs that dispense cash deposited in them.
- Bulk cash accepting machines.
- Read at: http://epaperbeta.timesofindia.com/Article.aspx?eid=31806&articlexml=Sensing-loan-waiver-farmers-stop-payment-27062014021086
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