Finland’s Minister for Foreign Trade and Development, Anne-Mari Virolainen, said the Nordic country favours a rules-based multilateral trade regime and hoped that the trade agreement between India and the European Union will be finalised.
Oriental Bank of Commerce, Corporation Bank and Bank of Maharashtra showed improvement in their profitability; IDBI Bank, Uco Bank, Dena Bank and Allahabad Bank reported marked deterioration in profitability and NPAs.
The committee may have members from outside the government and the RBI to look into these issues, sources said. The composition of the committee will be decided jointly by the finance ministry and the RBI.
The RBI board is slated to meet on November 19. The central bank is expected to provide some breathing space to state-owned banks by allowing early exit from PCA for those banks that show trend reversal in their net non performing assets (net NPA)
The RBI data shows that loans by NBFCs to MSMEs grew at an annual average rate of 35 per cent during the last five years. However, the current liquidity squeeze that the NBFCs are going through, has reduced the credit flow to the MSME sector.
Last Wednesday, the finance ministry said that the autonomy for the RBI “is an essential” and both the government and the RBI have to be “guided by public interest and the requirements of the Indian economy”.
Sources familiar with the discussions said the Department of Financial Services (DFS) is working closely with top officials in the Finance Ministry to prepare the plan, which is likely to be presented at the level of the PMO.
The government is also not receptive to the idea of granting additional powers to the RBI over regulation of public sector banks, as it feels the central bank already enjoys sufficient powers, the sources said.