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 »
 Seeks to amend BCD rates on certain textile goods.
 Common mistakes to avoid while filing your Income Tax Returns
 Income Tax Return filing season is here – Check top tricks to save money
 What is Income Tax Clearance Certificate? For whom is it a must?
 Don’t forget to mention these small things while filing income tax returns
 Wondering about your eligibility to file Income Tax Return?Read on
 Income Tax Return filing: How to link Aadhaar number with PAN card?
 India notifies rules for income tax computation for foreign firms
 How to save income tax by rejigging your salary
 How to fill tax exempt income and bank details section in ITR1
 Interest income from an NRO account is fully taxable in India

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 2018 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