Zoramthanga sworn in as Mizoram CM for third time

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 15: A day after Prime Minister Narendra Modi announced the extension of COVID-19 lockdown till May 3, the Ministry of Home Affairs (MHA) on Wednesday issued consolidated revised guidelines on measures to be taken by Ministries and Departments of Government of India, state and Union Territory governments and authorities for the containment of COVID-19.

As per the guidelines, all domestic and international air travel of passengers (except for security purposes), passenger movement by trains (except for security purposes), buses for public transport, metro rail services will remain prohibited.

It stated that all educational, training, coaching institutions etc. shall remain closed. Inter-district and inter-state movement of individuals except for medical reasons or for activities permitted under guidelines shall remain prohibited.

Taxis (including auto-rickshaws and cycle rickshaws) and services of cab aggregators to remain prohibited until May 3.

Also, all cinema halls, malls, shopping complexes, gymnasiums, sports complexes, swimming pools, entertainment parks, theatres, bars and auditoriums, assembly halls and similar places shall remain closed.

All social/political/sports/entertainment/academic/cultural/religious functions/other gatherings will also not be allowed.

"All religious places or places of worship shall be closed for public. Religious congregations are strictly prohibited. In the case of funerals, a congregation of more than 20 persons will not be permitted," the guidelines stated.

New Delhi, Mar 6: Justice S Muralidhar Thursday cleared the air over the controversy on his transfer from the Delhi High Court to Punjab and Haryana High Court, saying he had replied to Chief Justice of India S A Bobde's communication that he was fine with the proposal and had no objection to it.

The controversy erupted after the Centre issued Justice Muralidhar's transfer notification close to mid night of February 26 -- the day a bench headed by him had pulled up Delhi Police for failing to register FIRs against three BJP leaders for their alleged hate speeches which purportedly led to the recent violence in northeast Delhi.

Justice Muralidhar (58), who received a grand farewell on Thursday from a huge gathering including judges and lawyers amid big rounds of applause, said he wanted to clear the confusion on his transfer and narrated the sequence of events from the time he received CJI's communication till February 26.

The Supreme Court collegium, headed by the CJI, had in a meeting on February 12 recommended the transfer of Justice Muralidhar to Punjab and Haryana High Court.

Justice Muralidhar was number three in the Delhi High Court, his parent high court as a judge.

Explaining the transfer process, he said the 5-member collegium sends to the Centre a recommendation that a judge of a high court should be transferred to another high court. The judge concerned is not at this stage under orders of transfers. That happens only when the collegium's recommendation fructifies into a notification.

“In my case, the collegium's decision was communicated to me by the CJI on February 17 by a letter which sought my response. I acknowledged receipt of the letter, I was then asked to clarify what I meant. As I saw it, if I was to be transferred from the Delhi High Court any way, I was fine with moving to the Punjab and Haryana High Court.

“I therefore clarified to the CJI that I did not object to the proposal. An explanation for my transfer reached the press...on February 20 quoting 'sources in the Supreme Court collegium', confirming what has been indicated to me a couple of days earlier,” he said.

The CJI's letter dated February 14 was delivered to Justice Muralidhar on February 17, the day when the family's pet labrador Sakhi breathed her last.

He said February 26 was perhaps the longest working day of his life as a judge of the Delhi High Court, where he has spent 14 years on the bench.

He said it began at 12:30 am with a sitting at his residence with Justice A J Bhambhani, under the orders of Justice G S Sistani, to deal with a PIL filed by Rahul Roy seeking safe passage of ambulances carrying the injured riot victims.

“When I received a call at my residence from the lawyer for the petitioner, I first called Justice Sistani to ask what should be done, knowing that the Chief Justice (CJ) was on leave. Justice Sistani explained that he too was officially on leave the whole of February 26 and that I should take up the matter.

“This fact is stated in the order passed by the bench after the hearing. Later that day, upon urgent mentioning, as the de facto CJ's bench, Justice Talwant Singh and I took up another fresh PIL on the CJ's board seeking registration of FIRs for hate speeches. After the orders passed on that day, the above two PILs remained on the CJ's Board,” he said.

Justice Muralidhar ended the speech saying the notification which was issued close to midnight of February 26 did two things.

“First, it transferred me to Punjab and Haryana High Court. Second, it appointed me to a position from where I can never be transferred, or removed and in which I shall always be proud to remain. A 'former judge' of arguably the best high court in the country. The High Court of Delhi,” he said, following a standing ovation by all the judges and the gathering, including his family members, former judges, lawyers, court staff and media persons.

Earlier in the day, a farewell programme was also organised by the Delhi High Court Bar Association.

While addressing the gathering at the bar's function, Justice Muralidhar concluded his address saying “When justice has to triumph, it will triumph ... Be with the truth - Justice will be done.”

Justice Muralidhar's mother, wife Usha Ramanathan, former Delhi High Court chief justice A P Shah, senior advocate Shanti Bhushan and former Delhi University VC Upendra Baxi were also present at the later function that was organised by the court.

Bidding adieu to Justice Muralidhar, Delhi HC CJ D N Patel said it was an occasion which has come with a saddening effect and his absence will be felt institutionally as well as personally.

Delhi government standing counsel (criminal) Rahul Mehra termed Justice Muralidhar as a “highly intellectual, courageous, upright and incorruptible judge” and sang bengali song 'ekla chalo re' to describe him.

Mehra said he joins Delhi High Court Bar Association in “strongly condemning” Justice Muralidhar's transfer.