New Delhi, June 10
Worried over the spurt in bad loans, bankers today asked the Finance Minister to consider setting up a National Asset Management Company to deal with the problem and address capital issues of state-owned lenders.

"There were some suggestions on setting up of National Asset Management Company," Financial Services Secretary GS Sandhu said after Finance Minister Arun Jaitley's pre-Budget meeting with heads of banks and financial institutions here.

The proposed asset management company will take over large non-performing assets (NPAs), or bad loans, of banks and help in reviving companies ridden with bad debts.

"Major suggestions included...statement in Budget regarding re-capitalisation of public sector banks, dilution of government ownership in public sector banks up to 51%...," the Finance Ministry said.

Other recommendations included implementation of recommendations of the Naik committee report, removal of mismatch between asset liability and banks' balance sheets and need to revise the definition of priority sector lending, among others, it said.

In his opening remarks, Jaitley said the slowdown in economic growth, coupled with high inflationary pressure, poses a challenge to the economic environment.

"We together need to steer the economy in the right direction," he said.

The gross non-performing assets of public sector banks rose to Rs 2.03 lakh crore at the end of September 2013 from Rs 1.55 lakh crore on 31 March, 2013.

The level of NPAs in the domestic banking system was 4.4% of gross advances at the end of December 2013.

"There was discussion on NPA. There was also a proposal for setting up of National Asset Management Company for improving the performance of DRTs (debt recovery tribunals) to collect loans," HSBC India country head Naina Lal Kidwai said after the meeting.

Suggestions were made to strengthen the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act to ensure fast recovery of bad loans, she said.

There was a recommendation to raise the tax benefit limit for health insurance and for the tax exemption under Section 80C of the Income Tax Act to be enhanced from the existing Rs 1 lakh per annum.

Some also pitched for continuation of interest subvention scheme for investment lending in agriculture sector, insurance awareness to be made part of corporate social responsibility and interest subsidy for solar power projects. — PTI

Rising NPAs Bankers have suggested creation of National Asset Management Company to deal with the problem of rising bad loans The agency will take over large NPAs of banks and help in reviving firms ridden with bad debts The gross NPAs of public sector banks rose to Rs 2.03 lakh crore at the end of September 2013, from Rs 1.55 lakh crore on March 31, 2013

New Delhi, June 10
As government mulls over the impending natural gas price hike, Oil Minister Dharmendra Pradhan today said a right decision will be taken at the right time by balancing the urgency of reforms with the interest of the poor.

"We are examining all aspects of the issue. We are deeply into it. A right decision will be taken at the right time," he said.

Refusing to speculate on the timing or what the decision will be, Pradhan said bringing back the "derailed" economy on track is the top most priority of the Narendra Modi government and it will do whatever it takes for bringing back the momentum.

He said the government wants to stabilise the economy which had been made "bankrupt" by the previous UPA government.

"The first task is to stabilise the economy." The NDA government, Pradhan said, is for reforms as also protecting the interest of the poor.

"Economic reforms are not anti-poor. Economic reforms are infact pro-poor. We need to strike a balance between the two and we will do it. I do not want to say anything more than this right now," he added.

The first increase in natural gas prices in four years was to be originally effective from April 1. However, before a new rate could be unveiled, the General Election was announced and its implementation got deferred.

Last week, a top oil ministry official said a decision on the issue will be taken before July 1.

The ministry had on April 21 told Reliance Industries, which was made to sell natural gas from its eastern offshore KG-D6 fields at the old rate of $4.2 per million British thermal unit even after its term had expired, that a new rate would be announced by July 1.

The ministry will announce a new rate once its gets clarity on implementation of the Rangarajan formula, which would double the gas price, from the top.

Pradhan refused to say if his ministry will go to the Cabinet again for a review or approval of the Rangarajan formula which was approved by the previous UPA government.

The ministry is expected to make a presentation on the issues pertaining to the oil and gas sector to Prime Minister Narendra Modi in next few days and a clear direction on how to proceed on gas pricing will emerge after that.

If the Prime Minister gives a go-ahead for announcing a new rate as per the Rangarajan formula approved by the previous government in December last year, an announcement will be made forthwith. — PTI

Decision likely by July 1 The first increase in natural gas prices in four years was to be originally effective from April 1 However, the General Election deferred its implementation Last week, a top oil ministry official said a decision on the issue will be taken before July 1

New Delhi, June 10
Telecom operator Reliance Jio Infocomm has roped in Sunil Dutt, Blackberry's former head for India, as president.

"Yes, I have joined," Dutt said, declining to provide additional details. Dutt has over 30 years of experience in the technology industry.

Before serving as BlackBerry India managing director, Dutt was country head for Samsung India Electronics when the Korean company witnessed growth in its mobile devices business. Samsung's 'Next is What' campaign was launched during Dutt's tenure.

Dutt has also worked with computer maker HP, Nokia, Whirlpool and coffee chain Barista.

Reliance Jio, a wholly owned subsidiary of Reliance Industries Ltd controlled by Mukesh Ambani, has tied up with telecom companies, including rivals Bharti Airtel and Reliance Communications to expedite the launch of 4G services. — PTI

Mumbai, June 10
In volatile trade, the benchmark Sensex today came off new life time high of 25,711.11 hit in morning trade but managed to end with a slim 3.48-point rise at a fresh closing peak of 25,583.69 helped by rise in IT and pharma shares.

Similarly, the NSE Nifty edged up by 1.80 points, or 0.02 per cent, to register its an all-time high of 7,656.40. It hit an intra-trade life-time high of 7,683.20. — PTI

BRIEFLY

Govt bonds worth Rs 7,152 cr to be auctioned today
New Delhi: The NSE will auction tomorrow government debt securities worth Rs 7,152 crore for overseas investors, whose total investment has crossed 90% of permitted limit. At the same time, NSE in a circular also asked foreign investors not to increase their positions in interest rate futures (IRF) market as such exposure has also crossed the permitted levels. — PTI

SEBI clears Indian Hotels Company’s rights issue
New Delhi: Market regulator SEBI has given approval to Indian Hotels Company's proposal to raise up to Rs 1,000 crore from rights issue. Tata group firm Indian Hotels Company had filed draft documents with the SEBI in April for the rights issue. — PTI

Coal India to foray into fertiliser production
New Delhi: Coal India Ltd has decided to amend its Memorandum of Association for foraying into the business of producing fertilisers and chemicals using coal gas. The amendment will permit the firm to produce, process, store, distribute, sell, export or otherwise deal in gas and other byproducts. — PTI

Three new petrochemical investment regions on cards
New Delhi: The government is considering setting up three new petrochemical investment regions in the coastal areas of Karnataka, Maharashtra and West Bengal. At present, there are four such regions — Dahej in Gujarat, Paradeep in Odisha, Vishakhapatnam-Kakinada in Andhra and Cuddalore-Nagapattinam in Tamil Nadu. — PTI

Idea, IOC tie up to service 82m LPG customers
New Delhi: Idea Cellular and IOC have entered into a pact that will allow over 82 million LPG consumers of Indane to book LPG 24x7 on mobile phones and get delivery status updates. As part of the pact, Idea will extend its ‘smart gas solution’ service to enable end-to-end automation on refill delivery process of IOC. — PTI