sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« General »
 How income tax slabs have changed since Independence
 Budget 2019: This Budget could have some surprises in store
 Income Tax return processing time to reduce from 63 days to just 1 day
 Govt eases norms for start-ups seeking exemptions from 'angel tax'
 Maximise tax savings using health insurance for yourself and family
 FinMin considers steps to prevent composition dealers from charging GST from buyers
 Do-it-yourself online filers may need to ask for some help this tax season
 Do we need composition scheme in GST for real estate?
 Here's how you can claim tax benefit on a top-up home loan
 Year-end tax tips to get you ahead of the season
 Manual filing allowed for tax cut at lower/nil rate

FM cautions banks on falling asset quality
November, 12th 2010

Finance minister Pranab Mukherjee on Thursday cautioned against deteriorating asset quality in banks and said the sector needs to support the growth momentum in the economy following prudent lending . Banking sector needs to support the growth momentum in the economy while giving due attention to the asset quality and prudent provisioning to balance emerging returns and risks, he said at the 92nd foundation day of Union Bank of India here.

Mr Mukherjee cautioned that the asset quality of banks has deteriorated and the coverage ratio of provisions showed a fall at the aggregate level reflecting a weakening cushion to meet NPA losses. He pointed that banks profitability had also declined in 2009-10 in terms of all the major indicators.

India with growth trajectory heading towards 9% or more in the coming years is placed at a critical juncture. The banking sector needs to support this growth momentum , he said.

The finance minister emphasised the need to step up the efforts towards financial inclusion and indicated that the percentage of people having any kind of life insurance cover is just 10% while the percentage of non-life insurance is merely 0.6%.

Banks, therefore, need to step up efforts towards financial inclusion using the instrument of scale neutral technology as this would help in bringing the vast population into the ambit of formal finance and also boost future economic growth coupled with equity, he said.

According to the RBI, of the six lakh habitations in India only about 30,000 have commercial bank branches. On an average there are less than three bank branches per 100 sq km of land area and this ratio is worse for rural areas and for the north-eastern region.

In 2009 deposit mobilised in rural bank branches was merely 9% of total deposit mobilised by banks and the share of rural credit in total credit of banks was even lower at 7%, he said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions