Indian banks on top of situation over NPA problem: SBI Chairman
New York, Oct 29 : Indian banks are now "on top of the situation" on the problem of the non-performing assets (NPA), State Bank of India Chairman Rajnish Kumar said.
Kumar said that going by the initial results that have started coming in September, it seems that many banks are returning to profit.
Elaborating further on the issue of NPAs, Kumar said last year the system was struggling with higher and elevated NPAs and largely it was the steel and power sectors that got impacted the most.
"The major challenge which the banks - public sector more and some of the private sector banks (in India) - they have been facing is the asset quality challenge. For the last three years, it has been going on but as of now we are now on top of the situation on the NPA problem," Kumar told PTI in an interview here.
"In the power sector, the banks have still not been able to resolve the issues. But the Insolvency and Bankruptcy Code has helped the banks and at least now there is a solution available," he said.
Kumar added that the Insolvency and Bankruptcy Code has come as a "very good tool" in the hands of the banks and the financial creditors.
On the value of the rupee, which had this month fell below the 74 level compared to the dollar, Kumar said, "If the oil prices are stabilized, the exchange will also stabilize Domestic inflation is not as much a cause of worry because it is very much well within the target that the Reserve Bank of India has set."
He said domestically, the economy continues to do well but the oil prices are the "major culprit" because that impacts the country's current account deficit in a big way and it puts pressure on the exchange rate.
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No hurdle to increase Almatti Dam height, says Deputy CM Shivakumar
Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar on Thursday said there is no legal impediment to issuing a notification for the Upper Krishna River Phase-3 project, including raising the height of the Almatti dam, and indicated that the state would soon take a decision after consultations.
Speaking to reporters here after his recent Delhi visit, he also said an all-party meeting may be convened in the state even as there was broad political consensus on taking up irrigation issues with the Centre.
“There is no legal hurdle to issuing a notification for increasing the height of the Almatti dam, and there is no stay order either, as stated by legal experts. We will take our own decision soon. An all-party meeting may also be convened in the State,” Shivakumar, who holds the water resource portfolio, said.
He said 24 Members of Parliament from Karnataka attended a meeting held in Delhi, cutting across party lines except the Janata Dal (Secular), where various irrigation issues were discussed.
“We stayed in Delhi for two days and held a meeting of the State’s Members of Parliament. A total of 24 MPs attended. Except for the Janata Dal (Secular), MPs from the BJP, Congress, Independents and nominated members were present. I briefed them about the status of several irrigation projects in the State,” he said.
Shivakumar said several leaders offered suggestions and an all-party delegation would meet the Prime Minister and the Union Water Resource Minister C R Patil.
“Jagadish Shettar, Govind Karjol, Basavaraj Bommai and P C Mohan offered certain suggestions. Union ministers from Karnataka V Somanna and Pralhad Joshi said they could not attend and requested another meeting. It has been decided to take an all-party delegation to meet the Prime Minister and C R Patil. There is consensus on this,” he said.
Referring to legal consultations, he said, “In this matter, our legal advisors Mohan Katarki, retired judge Nagamohan Das and the Advocate General have given some useful inputs. We will take a decision soon.”
On urban development issues, he said the State has taken up concerns with the Centre regarding building norms. “We have brought to the notice of the Civil Aviation Minister the differences in premium FAR and building height regulations between our state and others. We will soon meet the Defence Minister as well. We have explained the issues faced by our state, and all have responded positively,” he said.
On the proposal for a second airport in Bengaluru, Shivakumar said it would be examined by the Cabinet.
He said state Minister M B Patil has submitted a proposal, and opinions have also been given. It needs to be placed before the Cabinet to discuss the pros and cons.
Issues like land acquisition, finances and other aspects must be examined. A study has been conducted and a report submitted, he added.
The Deputy CM said central aviation authorities have also provided a report on global standards regarding building height restrictions. The state government will take a decision after reviewing that report.
On the upcoming assembly by-elections in Bagalkote and Davangere, Shivakumar, who is also the Congress Karnataka unit president, said candidate selection would be decided by the party high command.
“Over the last two months, I have collected reports from booth level to all levels. Our leaders have visited and given their opinions. I have also spoken to some people. AICC secretaries will arrive in the next two to three days. The Chief Minister and I have discussed what needs to be done in the two constituencies. I cannot disclose it publicly. We will present our views in the interest of the party. ‘B’ forms will be distributed as per the decision of the high command,” he said.
Ruling out any preference for family members, he said, "Family is not important here. The party must win and that is what matters."
He noted that multiple stakeholders, including minorities, have claims that need to be balanced through discussions.
Shivakumar also told reporters that discussions on Assam elections were held with party leaders and another meeting would be conducted through video conference, following which a campaign schedule would be finalised.
Responding to demands for a Cabinet reshuffle, Shivakumar said there was nothing wrong in aspirations.
On whether it would be a reshuffle or power-sharing exercise, he said, “Time will decide.”
He also declined to comment on reports of a separate meeting with Priyanka Gandhi.
“I will not discuss that. I will not reveal whom I met or what I discussed. Time will decide,” he said.
On AICC General Secretary K C Venugopal’s statement that there was no vacancy for the Chief Minister’s post, Shivakumar said, “Yes, he has said there is no vacancy. He has also said that the party and MLAs will take a decision.”
