Govt loosens norms for auditor rotation at unlisted companies

The government has relaxed conditions for unlisted companies that do not have loans, from banks, financial institutions or deposits from the public, of more than Rs50 crore on rotation of auditors. Currently, these companies can’t appoint individual auditors for five consecutive years and auditor firms for two straight terms of five years, if their paid… Continue reading Govt loosens norms for auditor rotation at unlisted companies

MPC meeting minutes: Dholakia argued for at least 50-bp rate cut

Ravindra H Dholakia’s proposition, that plunging inflation called for a drastic rate cut of 50 basis points (bps) or more, clearly did not find other buyers in the six-member Monetary Policy Committee (MPC) that met on June 6 and 7. As the statements of the minutes show, they favoured a wait-and-watch. The MPC voted five… Continue reading MPC meeting minutes: Dholakia argued for at least 50-bp rate cut

NPA resolution: PMO takes stock of progress

The Prime Minister’s Office today held a stock taking meeting with senior officials of the ministries of finance and corporate affairs to review the progress in resolution of NPAs in the light of recent action taken by the Reserve Bank on stressed assets. Prime Minister’s additional secretary P K Mishra had a review meeting on… Continue reading NPA resolution: PMO takes stock of progress

Bank of Maharashtra shares down nearly 4% on RBI’s PAC action

Shares of Bank of Maharashtra (BoM) on Monday fell nearly 4 per cent as the Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PAC) against the company in view of a high level of bad loans and negative return on assets. The stock went down by 3.40 per cent to close at Rs… Continue reading Bank of Maharashtra shares down nearly 4% on RBI’s PAC action

NPA problem: RBI identifies 12 mega defaulters for insolvency

Financial News : The Reserve Bank of India (RBI) on Tuesday said its internal advisory committee (IAC) had identified 12 accounts that covered about 25 per cent of the banking system’s non-performing assets for immediate resolution under the Insolvency and Bankruptcy Code. The gross bad debt of the Indian banking system as of March was… Continue reading NPA problem: RBI identifies 12 mega defaulters for insolvency

Farm loan waivers may harm fiscal discipline; stoke inflation: RBI

Financial News : The Reserve Bank of India (RBI) on Wednesday warned that large-scale farm loan waivers by state governments will severely harm the country’s fiscal health and may spur inflation. RBI Governor Urjit Patel said unless state governments’ budgets allow that fiscal space to go in for a loan waiver, it would be risky… Continue reading Farm loan waivers may harm fiscal discipline; stoke inflation: RBI