Congress 'abusing' Hindus by protesting against CAA, should be called 'Muslim League Congress': BJP

Srinagar, Jan 9: Envoys from 15 countries including the United States were shown around Srinagar on Thursday, the first visit by New Delhi-based diplomats since the government stripped Kashmir of its semi-autonomous status and began a harsh crackdown five months ago.

The diplomats were driven by Indian authorities in a motorcade amid tight security from the airport to the military headquarters in Srinagar, where they were briefed on the security situation, an army officer said. He spoke on condition of anonymity as he was not authorized to speak to reporters.

They also held discussions with civil society members and some Kashmiri politicians, said Raveesh Kumar, spokesman for the Ministry of External Affairs (MEA).

The objective of the visit, organized by the Union government, was for the envoys to see first-hand “how things have progressed and how normalcy has been restored to a large extent'' in Kashmir since August, Kumar told reporters in New Delhi.

In October, a group of European Parliament members had visited the region, which is claimed by both India and Pakistan.

The delegation that visited Kashmir on Thursday included US ambassador to India Kenneth Juster and diplomats from Bangladesh, Vietnam, Norway, the Maldives, South Korea, Morocco, Niger, Nigeria, Argentina, the Philippines, Fiji, Uzbekistan, Peru and Togo.

Offices, shops and businesses were open in Srinagar on the cold winter day, but the diplomats did not stop to talk to people as they moved to different venues of their meetings.

They were to fly to Jammu, the winter capital of Kashmir, later Thursday and return to New Delhi on Friday.

Congress leader Jairam Ramesh pointed out the oddity of taking foreign diplomats to the troubled state but not allowing allowing Indian political leaders to freely visit it.

The National Conference said it was "disappointed" with the way the government brought envoys from various countries to "endorse" its "claims of normalcy" in the union territory. The party alleged that it was no more than a "guided tour" with access limited to "handpicked individuals who toe the government line".

“The NC wishes to ask these envoys that if the situation in Jammu & Kashmir is "normal", then why are scores of people, including three former chief ministers, under detention for almost 160 days and why have the people been denied access to the internet for over 5 months?" a statement issued by the party said.

Kumar dismissed as unfounded criticism of the visit, and said more such visits to Kashmir by New Delhi-based diplomats are likely in the near future.

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.