Public Sector Borrowings

The average annual borrowings by the Assam government increased by nearly 78 per cent over three years from 2019-20, while growth has slowed down for GSDP and per capita income during the current fiscal compared to the preceding year, according to the state's Economic Survey report for 2024-25. The report, tabled in the state assembly on Monday, said the borrowing of the state government was Rs 16,634.53 crore in 2019-20. It increased to Rs 30,510.80 crore in 2022-23, with an annual average growth of 77.92 per cent over the previous year. It said that as per advance estimates, the nominal GSDP at current prices for 2024-25 is likely to be Rs 6.43 lakh crore as against Rs 5.70 lakh crore in 2023-24, reflecting a growth of 12.74 per cent. According to figures mentioned in the budget speech of Finance Minister Ajanta Neog, the state's GSDP growth was 19 per cent in 2023-24 compared to the preceding year, indicating a fall in the projected annual growth rate for 2024-25. The Economic .

The finance ministry's ongoing efforts aim to strengthen fraud detection, improve the speed of investigations, and ensure accountability across the banking sector

States are allowed to go for a fiscal deficit of 3 per cent of their GSDP and 0.5 per cent relaxation is given in case they pursue power sector reforms

In the interim budget, the government announced a gross borrowing of Rs 14.13 trillion, with a fiscal deficit target of 5.1 per cent of the gross domestic product

Union Minister Jitendra Singh on Saturday said the country's public sector undertakings have lived up to the global benchmarks and they are the engine of its growth and development. Addressing an event here, he said "India, today excels in most of the global benchmarks, in some areas it is at par with other big nations, whereas in other areas it is much ahead of them." Singh, the Minister of State for Personnel, praised the public sector undertakings (PSUs) for their consistent contribution to the Indian economy and being the engines of growth and development. The rise of the Indian economy has been possible due to the contribution of the PSUs, he said. The PSUs have lived up to the global benchmarks and standards, the minister said. "It is due to their unparalleled efforts that India has risen in the global innovation index. Today, it is ranked 40 worldwide, ahead of many economies of comparable size, whereas it was at rank 81 in 2014," Singh was quoted as having said in a statem

CLSA expects private sector banks, which have been stock market laggards over the past few months, to give better returns ahead, given a good business outlook and inexpensive valuations

Sovereign bonds have already rallied in recent weeks, boosted by a reduction in short-term borrowings

Net borrowing excluding state-controlled banks was 20.5 billion pounds

Two books written by public sector bankers flag symptoms that range from seemingly small episodes to serious, reputation-ruining actions

Rating agency ICRA has assigned an "AA+" rating to the AT1 bonds of PNB

As things stand, the govt has over 80% ownership in six banks: Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, Central Bank of India, and Uco Bank

Banker-borrower collusion has led to a surge in IBC cases, with pre-planned fraud that results in minimal realisable value

This initiative entails providing special assistance to State Governments through 50-year interest-free loans, amounting to a total of Rs. 1.3 trillion during the financial year 2023-24.

Public sector lenders would end up issuing around Rs 13,500 cr worth of such bonds in coming weeks

The share of such loans declined between September 2020 and March 2022 in private banks and NBFCs but rose for public sector banks

As liquidity shrinks, lenders' reliance on short-term funding routes increases

The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the next quarter

Five former Bank of England rate setters have attacked their old employer for going soft on inflation despite hiking borrowing costs last Thurday to a 14-year high

Mere classification of a firm's loans as NPAs by lender banks does not relieve the borrower from its liability towards payment of interest or the principal, the authority says

Indian government's potential higher borrowing in the second half of this financial year could be offset by lower debt issuance by states, ICICI Securities Primary Dealership said.