Bank recapitalisation of Rs 2.11 lakh crore announced, Jaitley hits out at Rahul for Gabbar Singh Tax jibe

Union Finance Minister Arun Jaitley in a detailed press conference gave a detailed account of the state of the economy. He also announced steps towards bank recapitalisation and also announced a big road construction initiative BharatMla program.

Union Minister for Finance and Corporate Affairs, Arun Jaitley with top officials of his ministry after a press conference at Na

Arun Jaitley said in the beginning,” There have been lot of discussions and reviews of the economy in the past few weeks within the ministry. When results of the GDP of the first quarter came out then I had said that we will be ready for the response. India has remained world’s fastest growing large economy for the past three year.”

A detailed presentation was given by the Finance Ministry to press home the point that economy is in sound condition. It also highlighted several steps taken and planned to boost economic activities in the country.

Here are the big highlights:

The Cabinet has approved an unprecedented Public Sector Bank capitalisation plan of Rs 2,11,000 crores.

– Various capital infusion measures taken by the government to ensure health of Public Sector Banks.

– Increased provisioning done by PSBs to cover expected losses, improving banks health.

– Post systematic Asset Quality Review, stressed assets have been recognised as Non-Performing Assets.

Public Sector Banks will catalyse private investmentCentre announces BharatMala road building programme:

 Excerpts from presentation by Finance Secretary Ashok Lavasa:

– Effective and targeted government spending is the main priority of government.

– A historic decision has been taken regarding road construction.

– The BharatMala programme is the biggest component of road building programme. 34,800 km of roads to be built under the programme.

– About 2,000 km of coastal roads will be constructed in first phase of BharatMala.

– Inter-country trade to be facilitated by improving infrastructure leading to border points. Border road connectivity to be strengthened, enhancing national security.

– Big push to be given to rural road connectivity.

– Universal affordable housing is being implemented.

17:48 PM

CEA Arvind Subramanian says need to strengthen banks for supply of credit.

 

17:48 PM

Bank recap will take care of supply-side in one go, says SBI Chairman. He calls it the need of the hour.

 

17:27 PM

Arun Jaitley hits out at Rahul Gandhi for Gabbar Singh Tax jibe. He says, ” Those who were used to 2G scam and coal scam will have a lot of problems with legitimate tax”.

 

17:20 PM

Arun Jaitley says along with bank recap, reforms will also be undertaken. He says steps will be taken to avert a situation of that in the past when loans were given by banks without properly analysing and assessing their books.

 

17:15 PM

Arun Jaitley says today’s decision for bank recapitalisation is a major step towards bank reforms.

He says, ”  Public sector banks have adequate lending capacity now, post demonetization”. Nature of the recap bonds will be made public later, says Arun Jaitley.

Out of Rs 2.11 lakh crore, Rs 1.35 lakh crore will be via bonds. Recap roadmap is of two years.

Arun Jaitley parries questions about its effect on fiscal deficit.

 

17:05 PM

 

16:58 PM

 

LIVE: Post systematic Asset Quality Review, stressed assets have been recognized as Non-Performing Assets https://youtu.be/PCc7tjJFMBs 

 

 

16:54 PM

Now the all important slides regarding bank recapitalisation are being shown.

 

16:47 PM

16:36 PM

Road building is a major stress for the government. Over 83k km of road is planned to be made in the next five years. Rs 6.92 lakh crore will be invested for this ambitious project. Biggest component of the initiative is the Bharatmala programme.

 

16:33 PM

There has been good push to public spending, says Finance Ministry.

Capex target is 31% higher than last year.

 

16:30 PM

Economic secretary says how GST is a real gamechanger and is a major reform for the economy. He says glitch regarding GST are being ironed out.

This year will be one of largest disinvestment program in the country, says Economic Affairs Secretary.

 

16:24 PM

Economic secretary is giving several numbers to show that Indian economy is in strong ground. He gives data of fiscal consolidation, current account deficit to press home his point.

 

15:53 PM

Union Finance Minister is now speaking. He says they have done detailed conversation regarding state of the economy and how to bolster it.. Jaitley says when big disruptions are made, there are some short-term negative effects, but those are good in medium and long term. The macroeconomic fundamentals are strong, says Arun Jaitley.

Arun Jaitley says different parameters have been set for what to do to change the state of the economy. He says a detailed presentation laying down the future course of action will be given.