Insult to Muslims to say Ramadan will affect voting: Asaduddin Owaisi

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, Apr 24: The Jamia Coordination Committee (JCC) on Friday accused Delhi Police of framing two of its members - Meeran Haider, Safoora Zargar, along with student leader Umar Khalid, as part of "an imaginary conspiracy behind the recent North East Delhi riots".

While Haider was arrested on April 2, Zargar was taken in custody on April 10 for their alleged involvement in fuelling the riots.

"These arrests by the police have little ground, and the charges seem to have no rhyme or reason. Safoora was even granted bail in the case she was initially arrested in, following which she was arrested and had heavier charges placed against her," the JCC said in a statement.

Meeran, Safoora and Umar have been charged under the Unlawful Activities (Prevention) Act (UAPA), which allows curbing of fundamental rights in order to protect the sovereignty of India. The JCC, however, claimed that in this case, the Act is being used to suppress their voices.

"This Act has been used against many activists working to protect constitutional morality, a list which now includes members of the JCC, a wholly constitutionalist collective of students and alumni," the JCC said, defending its members.

JCC maintained it had no role in Delhi riots, but apprehended that more people will be arrested by the Delhi Police as part of its conspiracy against students and protestors.

"It is almost certain that more protesters will be framed and arrested in the conspiracy invented by the Delhi Police. JCC reiterates that it played no part in the riots, and this fact will be proved before any court of law," it said in a statement.

It also demanded political parties, and university administration take a stand for the two accused JCC members and student leader Umar Khalid.

The JCC came into existence after a violent face-off between Delhi Police and unruly anti-CAA protestors left Jamia Millia Islamia vandalised. It was after this, that a group of students from the Jamia Millia formed it to decide upon the future course of actions in protest against the CAA and the police action.

Stockholm, Jan 4: “I’m not the kind of person who celebrates birthdays,” Greta Thunberg said as she turned 17 on Friday, marking the occasion in inimitable style - with a seven-hour hour protest outside the Swedish parliament.

The climate activist braved winter conditions in her native Stockholm to continue the weekly Friday School Strike for the Climate campaign that helped catapult her to international fame.

“I stand here striking from 8am until 3pm as usual ... then I’ll go home,” Thunberg, Time magazine’s Person of the Year for 2019, told Reuters.

“I won’t have a birthday cake but we’ll have a dinner.”

It’s been a busy 12 months for Thunberg, who crisscrossed the globe by car, train and boat - but not plane - to demand action on climate change.

“It has been a strange and busy year, but also a great one because I have found something I want to do with my life and what I am doing is having an impact,” she said.

When she was 15, Thunberg began skipping school on Fridays to demonstrate outside the Swedish parliament to push her government to curb carbon emissions. Her campaign gave rise to a grassroots movement that has gone global, inspiring millions of people to take action.