Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: list of goods taxed at 4% :: empanelment :: cpt :: articles on VAT and GST in India :: VAT RATES :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
« Mergers and Acquisitions »
 The Role Of Brand In Petroleum Mergers And Acquisitions
 Mergers and Acquisitions: What Happens After the Announcement?
 Agency mergers and acquisitions continue to be strong for first-half 2016
 The Intricacies Of Financial And Legal Relationships In M&A
 3 integration considerations for Mergers & Acquisitions
 Mergers and acquisitions take centre-stage as funding for start-ups dries up
 Mergers and Acquisitions reach highest quarterly value in India
 18 digital health exits (mergers, acquisitions, and IPOs) in Q3 2016
 Number of mergers and acquisitions rise in 2016, Experian finds
 Indian startups are more willing than ever to acquire and be acquired
 India’s mergers and acquisitions reaches highest quarterly value in Q3 2016: Report

Bank mergers mooted to beef up capital
June, 24th 2009

The Chairman and Managing director of the Central Bank of India, S. Sridhar, said the idea of merging public sector banks is perhaps being mooted to strengthen the capital base of the banks, Mr. Sridhar said on the sidelines of a panel discussion organised by the Commonwealth Secretariat on Micro, Small and Medium Enterprises (MSME) and the global economic slowdown in Bangalore on Monday.

Asked whether bankers are worried about the increase in the fiscal deficit, Mr. Sridhar told The Hindu that although there were some apprehensions that higher government borrowings might crowd out private borrowings and result in higher interest rates, this had to be balanced by the possibility that the higher deficit might provide an impetus to demand in the economy.

Mr. Sridhar said MSMEs, which contributed more than one-third of the countrys exports, were badly affected by the synchronised downturn in the global economy. Unlike past episodes of recessions, a recovery from this crisis is unlikely without a coordinated response from all major nations, he said. The crisis has resulted in a fall in demand for goods and services. People are saving, not incurring personal debt and want to avoid risks, he said. The most severe impact has been on weaker sections such as small and marginal farmers, people working in informal occupations and MSMEs, he said.


The crisis had resulted in a trend towards re-regulation in the financial sector across the world, Mr. Sridhar said. Old-fashioned bankers who did not indulge in a high degree of leverage during the boom are now having the last laugh, he said. Banks which wrote off the loans of small farmers have emerged unscathed from the crisis.

As a result of the crisis, the working capital cycle of MSMEs has become elongated, Mr. Sridhar said. They find the need to hold inventories longer and that payback periods are now longer, he said. The managements of MSMEs are now under greater pressure to find markets and managerial talent, especially those who can contribute to innovation which results in changes in processes in their units during these tough times, Mr. Sridhar said.

He said a dedicated credit rating agency exclusively meant for rating MSMEs would help reduce risks for lenders.

He suggested greater flexibility in lending, taking into account borrowers ability to pay.

He said banks such as his were now providing factoring services to MSMEs that supplied to large corporates. This, he said, reduced the burden on the working capital requirements of MSMEs. Central Bank of India planned to increase its loan portfolio to MSMEs by 35 per cent during the current year. At present, the sector accounted for about eight per cent of the banks advances. Mr. Sridhar said the bank hoped to increase the share of this sector to 10 per cent in 2009-10.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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