Dark days ahead for Indian rupee, reveal strategists

New Delhi, Jan 18: The Supreme Court Friday refused to entertain a PIL seeking conferment of 'Bharat Ratna' on Mahatma Gandhi saying that people hold the father of the nation in “high esteem”, beyond any formal recognition.

A bench, comprising Chief Justice S A Bobde and justices B R Gavai and Surya Kant, however asked petitioner Anil Dutta Sharma to give representation to the central government in this regard.

“Mahatma Gandhi is the father of nation and people hold him in high esteem, beyond any formal recognition,” the bench said.

The issue of directing the government to award Bharat Ratna to the father of the nation was not a “justiciable issue”, it said.

The bench however said that it agreed with the sentiments of the petitioner for granting official decoration to Mahatma Gandhi.

Disposing of the petition, the top court said, “We will allow you to give a representation to the Centre in this regard.”

Sharma, in his PIL, had sought a direction to the government to give “official decoration” to Mahatma Gandhi to honour him for the contribution to the nation.

Munbai/New Delhi, May 4: India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers said.

Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019.

"There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default," the official with direct knowledge of the matter said.

A fresh surge in bad debt could hit credit growth and delay India's recovery from the coronavirus pandemic.

"These are unprecedented times and the way it's going we can expect banks to report double the amount of NPAs from what we've seen in earlier quarters," the finance head of a top public sector bank told Reuters.

The official and bankers declined to be named as they were not officially authorized to discuss the matter with media.

India's finance ministry declined to comment, while the Reserve Bank of India and Indian Banks' Association, the main industry body, did not immediately respond to emails seeking comment.

The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases.

The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus.

India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.

'RIDING THE TIGER'

Bankers fear it is unlikely that the economy will fully open up before June or July, and loans, especially those to small- and medium-sized businesses which constitute nearly 20% of overall credit, may be among the worst affected.

This is because all 10 of India's largest cities fall in high-risk red zones, where restrictions will remain stringent.

A report by Axis Bank said that these red zones, which contribute significantly to India's economy, account for roughly 83% of the overall loans made by its banks as of December.

One of the sources, an executive director of a public sector bank, said that economic growth had been sluggish and risks had been heightened, even ahead of the coronavirus crisis.

"Now we have this Black Swan event which means without any meaningful government stimulus, the economy will be in tatters for several more quarters," he said.

McKinsey & Co last month forecast India's economy could contract by around 20% in the three months through June, if the lockdown was extended to mid-May, and growth in the fiscal year was likely to fall 2% to 3%.

Bankers say the only way to stem the steep rise in bad loans is if the RBI significantly relaxes bad asset recognition rules.

Banks have asked the central bank to allow all loans to be categorized as NPAs only after 180 days, which is double the current 90-day window.

"The lockdown is like riding the tiger, once we get off it we'll be in a difficult position," a senior private sector banker said.

New Delhi, Jan 11: Islamic preacher Zakir Naik has revealed that the Bharatiya Janata Party-led government offered to drop false money-laundering charges against him and provide with a "safe passage to India" in return for his support to the government's move to revoke Article 370 of the Constitution.

In a statement issued by Naik's PR team on Saturday, the Islamic preacher said that he was approached by a representative of the Indian government in September, who offered him the said deal on Kashmir, which he refused.

"Three and a half months before, the Indian officials approached me for a private meeting with a representative of the Indian government. When he came to Putrajaya (a Malaysian city), in the fourth week of September 2019, to meet me, he said that he is coming after personally meeting and under the direct instructions of the Prime Minister of India Narendra Modi and the Home Minister of India Amit Shah," Naik said in a video statement released by his Mumbai-based PR team.

Naik, who has been living in Malaysia for the last three years, is facing charges of inciting communal disharmony and committing unlawful activities in India.

"(The representative) said that he wanted to remove the misconceptions and miscommunications between myself (Naik) and the Indian government, and wants to provide me a safe passage to India," he added. "He (the representative) said that he would like to use my connections to better the relationship between India and the other Muslim countries."

"The meeting lasted for several hours. He told me that he wanted me to support the BJP government when they revoked Article 370 in Kashmir. And I flatly refused," he added.

Naik said that after he refused the offer, he was further asked to not make public statements against the BJP or Prime Minister Narendra Modi.