Connect with us

Business

To avoid future frauds, need to rethink PSB’s ownership: Subramanian

Published

🕒

on

IST

New Delhi: Pitching for radical reforms in the banking sector, Chief Economic Adviser (CEA) Arvind Subramanian today said that time has come for rethinking on the ownership of public sector banks (PSBs) in India.
Subramanian also regretted that recent banking frauds, including the one at Punjab National Bank (PNB), have resulted in a set back to efforts being made to resolve the bad loan problem under the Insolvency and Bankruptcy Code (IBC).
“I think we are now coming more and more to the view that if you want this problem (spate of frauds in PSBs) not to recur in the future, then we can’t throw money in a black hole.
“My own strong view is that we need to rethink on public sector ownership of banks,” he said while interacting with the students of Delhi School of Economics (DSE).
Subramanian said that going forward, “We need to have radical agenda for reform of the banking sector if we want these things not happen in future.”
The CEA said that to address the twin balance sheet challenges, the government had taken two very important steps — the IBC process for cleaning up of the corporate balance sheet and the recapitalisation of banks.
“But I think, to be honest, all those efforts received set back due to all the news (banking frauds) that happened recently,” Subramanian said, adding that India needs a fresh round of measures to overcome twin balance sheet challenges.
Asked to comment on the recent statement made by Nobel laureate Paul Krugman about lack of manufacturing jobs in India, the CEA admitted that it is true that the country missed manufacturing bus 25-30 years ago.
“But if you look at the world of future. I am not sure whether manufacturing sector will be same employment generator as it was in the past,” Subramanian said, adding that sectors like construction, agriculture, and services can be more employment generators in changing scenario.
Subramanian noted that India cannot grow solely based on domestic demand.
“In the post-war period of 70 years, no country has grown 8-10 percent for 30-40 years based on internal demand. India could be exceptional but history is against India,” he argued.


Advertisement
Loading...
Comments

Business

GST relief for realty sector coming: Goyal

Agencies

Published

on

New Delhi:Finance Minister Piyush Goyal said the government is considering giving relief to the real estate sector and the next GST Council meeting could take some steps to address their issues even as he asked the banks to meet the realty sector on stalled projects in two weeks.

At the industry body CREDAI event here, he also advised the realty sector to sell off inventory even in the current pricing about which the realtors complain as being low. Goyal has been asking banks to step up lending to the housing sectors.

The finance minister asked the state-run banks to meet realty sector on stalled projects in two weeks and asked the realtors not to over-leverage the loans and drive away the banks from lending them. SBI chairman Rajnish Kumar was also present in the event.

 

While crediting the Prime Minister with taking up the problems of the housing sector, Goyal said “The Prime Minister guided us that we must relook at the GST structure. We have been having extensive discussions and last time probably we would have been able to finalise it but for some different view points came out from different quarters which was natural but somewhere you have to come at a consensus.

“I think what the GoM on Housing has decided on the final consensus, I am confident, you will support that and very soon the GST Council meeting has been called for and I am sure the solutions will come out and you all can benefit out of that. Some of you may feel at disadvantage of about 1-2 per cent.

“Here I will seek your support that you accept what the GST Council decides and this is in your interest also. You will be spared of queries from officials over small issues like if you have passed on the input tax credit to the consumers or not, being pushed to the anti-profiteering tribunal. I think that will be the biggest benefit to you all.”

The ailing real estate market is looking to get GST intervention to come out of the slump. Though the Finance Minister did not reveal the relief that is coming from GST, the government is in the process of handing out a big pre-election bonanza to property developers and buyers by reducing GST on under-construction houses, from 12 per cent to 5 per cent. GST on affordable housing, meanwhile, will only be 3 per cent.

The GST Council meeting is slated for February 20 and is expected to take up and pass these proposals. Under-construction houses currently attract 12 per cent GST and 6 per cent stamp duty and registration Goyal had earlier held a meeting with CREDAI, the umbrella body of developers, whereby he had promised that in the upcoming GST council meeting, tax on under-construction houses and affordable housing would be reduced significantly. Even in his Budget speech, Goyal had said his government will reduce GST on under-construction houses.

He further said he and the PM have had extensive discussions in the interim Budget over the housing sector. while the government did not change too much and the major proposals will come in July (in the NDA government again) but it focussed on the affordable housing sector in which it made a few modifications which the government hoped will help in the growth of the sector.

The industry is of the view that people are staying away from investing in property due to heavy taxes. A builder said at 12 per cent GST, if the cost of a house is Rs 1 crore, buyers have to pay Rs 12 lakh as tax plus 6 per cent stamp duty and registration, which means the customer ends up paying Rs 1.20 crore which is a huge amount. It also meant under-construction real estate market was facing troubled times. The industry wants to revive the under-construction market facing the maximum pressure.

Continue Reading

Business

Morgan Stanley arm snaps majority stake in KSH Infra for Rs 350 cr

Agencies

Published

on

Mumbai: Morgan Stanley’s realty investing arm has infused Rs 350 crore into Pune-based warehousing and industrial logistics park developer KSH Infra for over 50 percent stake.
This is the maiden investment by the Morgan Stanley Real Estate Investing (MSREI) in the country’s warehousing space. KSH Infra operates two warehousing and industrial logistics parks in Pune totalling approximately 1 million square feet, leased to blue-chip multinationals.

KSH Infra was a part of erstwhile KSH Group, a 40-year old established group with multiple businesses such as Internal Container Depot (ICD), manufacturing and logistics. Pursuant to the transaction, KSH Infra was demerged from KSH Distriparks which also operates an ICD out of Pune and has 3PL logistics business pan-India.

“Our engineering team has delivered in excess of a million sqft of industrial and warehousing space which is leased to leading MNCs. We are actively looking at growing our industrial/warehousing verticals and see robust demand from various segments including manufacturing, logistics companies, retailers and e-commerce players,” said Rohit Hegde, managing director, KSH Distriparks.

 

Avendus Capital was the exclusive financial advisor to KSH Group and its shareholders.

Last year Warburg Pincus-backed ESR Group, along with Germanys Allianz, set up a USD 1-billion investment platform targeting the logistics space in the country.

Similarly, in September 2018, GLP established a strategic joint venture with IndoSpace, marking its entry into India.

Continue Reading

Business

Videocon posts Rs 1,023 cr loss in Q3

Agencies

Published

on

Mumbai: Debt-ridden Videocon Industries reported a net loss of Rs 1,023.08 crore for the third quarter of the current fiscal.

The company had reported a net loss of Rs 1,314.96 crore in the year ago period.

Its total income fell sharply to Rs 223.73 crore during the October-December of 2018-19 from Rs 864.34 crore in the corresponding period previous year, the company said in a regulatory filing.

 

The filing further said that manufacturing activity of Glass Shell division, which manufactures panels and funnels used in colour picture tube of colour television, has been suspended from July, 2017 due to poor demand.

“However, the company has not assessed or reviewed the plant and machinery and other fixed assets related to the Glass Shell division for the impairment and the impairment loss, if any, has not been ascertained,” it added.

The company had written off certain loans and advances aggregating to Rs 1,413.35 crore during the nine months ended December, 2018.

Videocon’s scrip closed at Rs 2.02 apiece on the BSE, down 1.46 per cent.

Continue Reading

Latest News

Subscribe to The Kashmir Monitor via Email

Enter your email address to subscribe to The Kashmir Monitor and receive notifications of new stories by email.

Join 986,633 other subscribers

Archives

February 2019
M T W T F S S
« Jan    
 123
45678910
11121314151617
18192021222324
25262728  
Advertisement