NEW DELHI: The executive has now not asked the Reserve Bank to pay any particular dividend and is handiest looking for Rs 13,000 crore of surplus mendacity with the central bank, Economic Affairs Secretary Subhash Chandra Garg has stated.
In August, the RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017. It used to be lower than part the Rs 65,876 crore it had paid in 2015-16.
The executive had budgeted for a Rs 58,000 crore dividend from the RBI in its Budget for this fiscal 12 months.
"There is no proposal at this stage to ask for any special dividend. What is being discussed is to only ask for what the RBI earned this year but did not distribute. That is about Rs 13,000 crore. That's what the government has suggested the Reserve Bank to transfer," Garg informed PTI.
RBI's benefit used to be about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it retained in opposition to risks and reserves. So the federal government has made a proposal that the Rs 13,000 crore can also be transferred, he stated.
The executive had last month introduced an remarkable Rs 2.11 lakh crore capital infusion in PSU banks, that are grappling with prime non-performing assets (NPAs).
Asked in regards to the contours of the recap bonds, Garg stated "the recapitalisation package is in the final stages. The Department of Financial Services is working on it and soon we would see all these aspects being addressed".
Of the Rs 2.11 lakh crore, Rs 1.35 lakh crore can be infused thru recapitalisation bonds and the remaining Rs 76,000 crore thru budgetary improve and banks diluting equity in capital marketplace.
Credit ranking agency Moody's had last week upgraded India's sovereign ranking after a gap of over 13 years mentioning reform push and steps being taken through the federal government to resolve the prime NPA issues within the banking sector.
Bad loans within the sector have neared Rs 10 lakh crore.
Garg stated Moody's has stated the reform process and believes that India is in a position to control its debt and put its banking sector so as.
"The kind and quality of reforms, the boldness of reforms, the structural, fundamental needs of reform is what has persuaded them to believe that India is now on a longer term high growth path ...That (reform) process will continue and I don't see any slackening in reform effort," he stated.
The US-based ranking agency cited executive efforts to reduce corruption, formalise financial activity and enhance tax assortment and administration, together with thru demonetisation and GST, as well as enhancements to the monetary coverage framework and measures to clean up non- performing loans as reform steps which might foster sustained financial growth.
On privatisation of Air India, Garg stated it's progressing "reasonably steadily" and the plan about privatise has also been extensively worked out.
Asked if it might occur within the current fiscal, Garg stated, "I won't put a timeline on when this is likely. Air India is not just one company, there are other assets."
The executive has 'in-principle' decided to disinvest the Air India group as an entire or its constituents totally or part thereof throughout the strategic sale with transfer of control control.
Air India has a debt burden of more than Rs 50,000 crore.
The Cabinet, in June, had decided on strategic disinvestment of the loss-making Air India, which is staying afloat on taxpayers' price range, and a ministerial panel is operating at the modalities.
In August, the RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017. It used to be lower than part the Rs 65,876 crore it had paid in 2015-16.
The executive had budgeted for a Rs 58,000 crore dividend from the RBI in its Budget for this fiscal 12 months.
"There is no proposal at this stage to ask for any special dividend. What is being discussed is to only ask for what the RBI earned this year but did not distribute. That is about Rs 13,000 crore. That's what the government has suggested the Reserve Bank to transfer," Garg informed PTI.
RBI's benefit used to be about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it retained in opposition to risks and reserves. So the federal government has made a proposal that the Rs 13,000 crore can also be transferred, he stated.
The executive had last month introduced an remarkable Rs 2.11 lakh crore capital infusion in PSU banks, that are grappling with prime non-performing assets (NPAs).
Asked in regards to the contours of the recap bonds, Garg stated "the recapitalisation package is in the final stages. The Department of Financial Services is working on it and soon we would see all these aspects being addressed".
Of the Rs 2.11 lakh crore, Rs 1.35 lakh crore can be infused thru recapitalisation bonds and the remaining Rs 76,000 crore thru budgetary improve and banks diluting equity in capital marketplace.
Credit ranking agency Moody's had last week upgraded India's sovereign ranking after a gap of over 13 years mentioning reform push and steps being taken through the federal government to resolve the prime NPA issues within the banking sector.
Bad loans within the sector have neared Rs 10 lakh crore.
Garg stated Moody's has stated the reform process and believes that India is in a position to control its debt and put its banking sector so as.
"The kind and quality of reforms, the boldness of reforms, the structural, fundamental needs of reform is what has persuaded them to believe that India is now on a longer term high growth path ...That (reform) process will continue and I don't see any slackening in reform effort," he stated.
The US-based ranking agency cited executive efforts to reduce corruption, formalise financial activity and enhance tax assortment and administration, together with thru demonetisation and GST, as well as enhancements to the monetary coverage framework and measures to clean up non- performing loans as reform steps which might foster sustained financial growth.
On privatisation of Air India, Garg stated it's progressing "reasonably steadily" and the plan about privatise has also been extensively worked out.
Asked if it might occur within the current fiscal, Garg stated, "I won't put a timeline on when this is likely. Air India is not just one company, there are other assets."
The executive has 'in-principle' decided to disinvest the Air India group as an entire or its constituents totally or part thereof throughout the strategic sale with transfer of control control.
Air India has a debt burden of more than Rs 50,000 crore.
The Cabinet, in June, had decided on strategic disinvestment of the loss-making Air India, which is staying afloat on taxpayers' price range, and a ministerial panel is operating at the modalities.
Government seeks Rs 13,000 crore surplus from RBI
![Government seeks Rs 13,000 crore surplus from RBI]()
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November 19, 2017
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