Banking secretary Rajiv Kumar will hold a meeting with banks, power companies, and senior officials of Reserve Bank of India and related ministries on June 21 to discuss the banking regulator’s new norms on stressed assets in relation with power projects, as directed by the Allahabad High Court.
Anecdotes such as better-than-expected GDP data and rising crude oil prices, which have posed additional upside risks to headline inflation, are all pointing towards a more hawkish tone from the Reserve Bank of India (RBI) in its upcoming meeting, which is scheduled on June 4-6.
The Allahabad High Court ruled that a power company can’t be taken to bankruptcy court for not repaying loans unless it has been declared a wilful defaulter, recognising the stress that the sector is under. It also directed the finance secretary to meet power producers in June to discuss their financial woes.
India’s economy will grow 7.3% in the current financial year and gain pace to 7.5% next year as the “temporary drag” from demonetisation and the goods and services tax fades away, Fitch Ratings forecast.
Some nights before he goes to sleep, Anil Agarwal says he dictates memos on a small voice recorder. The next day, he gives it to his secretary for follow up. “At that hour, it is better to record anything that comes to mind otherwise you may forget,
Fearing Reserve Bank of India’s revised guidelines for stressed assets may force some 75,000 mw of coal-fired power projects into bankruptcy, the Association of Power Producers has requested the government to relax timelines of the new rules for the sector.
The first of the 12 big nonperforming loans referred by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code (IBC) last year has reached closure with the committee of creditors approving the offer made by a consortium of Aion Capital and JSW Steel for Monnet Ispat.
The villains in the power sector’s tale of woes haven’t changed in a while: worsening asset quality and rising non-performing assets (NPAs).
India’s retail inflation accelerated more than estimated to a 17-month high and little respite is seen in the coming months amid a surge in oil prices, increasing the odds that borrowing costs will rise sooner than expected.
In its fifth bi-monthly monetary policy, the Reserve Bank of India (RBI) had indicated that moderation in inflation, excluding food and fuel, observed in the first quarter of this fiscal has reversed and there is a risk that this upward trajectory may continue in the near-term.