Lok Sabha defers discussion on banking reforms Bill
The Lok Sabha on Thursday postponed the discussion on the Banking Laws (Amendment) Bill, 2011 following objections by CPI leader Gurudas Dasgupta that due procedure was not followed. “The Speaker has agreed it (consideration and passage the Banking Laws (Amendment) Bill 2011) to be postponed," deputy Speaker Karia Munda announced in the House. Dasgupta has objected to taking up of the important financial reform Bill, saying that the government did not follow the procedure for consideration of the legislation in the House. The Banking Laws (Amendment) Bill seeks to amend three Acts — the Banking Regulation Act 1949, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The consequent changes in the comprehensive amendment Bill will pave way for corporates to set up banks in the country.
‘Banks told to speed up NPA recovery’
Public sector banks have been asked to take fresh steps to speed up recovery of non-performing assets (NPAs), finance minister P Chidambaram said in the Rajya Sabha on Thursday. “The government has advised public sector banks to take a number of new initiatives to increase the pace of recovery and manage the NPAs, which include appointment of nodal officers for recovery, to conduct special drives for recovery of loss assets...," he said during the Question Hour. He said the "stress" in the economy is reflected in the increasing NPAs and they will come down once the economic situation improves. He also said a bit of handholding is required for the stressed sectors.
‘Rupee could rise to 52/dollar by 2013 end’
The rupee could rise to 52 per dollar by end of 2013 and is Credit Agricole’s top pick among the emerging markets. The government winning the vote on FDI in multibrand retail will continue to help the rupee despite questions on whether the reform will be approved by the Upper House and concerns about its implementation. “The government's victory is a good sign of its ability to push through other reforms,” says the bank.
RBI rate cut unlikely on Dec 18: Barclays
British lender Barclays on Thursday said the Reserve Bank of India (RBI) is likely to leave the policy rates unchanged at the December 18 review and that a lending rate cut may happen only in the January policy announcement. “We believe RBI will continue with its liquidity infusions through CRR cuts