Of bad loans and insolvency

7.2%

 

What is it? The projected growth rate of the Indian economy in current financial year 2017-18, according to International Monetary Fund (IMF).

Why is it important? This represents reversal in growth slowdown following demonetisation introduced in November- December last year. World’s sixth largest economy grew at 8% in 2015-16, before slowing down to 7.1% in 2016-17. IMF has attributed growth revival to revision in national income accounting and government spending.

Tell me more: Global economy is expected to grow at 3.5% this year, as compared to 3.2% in 2016.

 

 

1.24%

 

What is it? The gross non-performing assets of HDFC Bank, India’s largest private sector bank in market capitalisation, for the three months ended June 2017.

Why is it important? This is the highest in seven years, and bad loans increased by 23% in one quarter. And 60% of the increase was from farm loans portfolio. Slew of farm loan waivers announced by state governments like Uttar Pradesh and Maharashtra is likely to impact farm loan repayment, and increase bad loans for banks.

Tell me more: Banks have disclosed weakening of microfinance asset quality following demonetisation during January- March 2017. HDFC Bank says microfinance loans have not deteriorated further.

 

 

56

 

What is it? The number of applications filed by debtors to declare insolvency.

Why is it important? This is more than a third of cases approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 in the last one year. It also shows companies are seeing insolvency proceedings as a chance to reset their business in a time bound manner.

Tell me more: Under the new bankruptcy code, cases have to be resolved within 6 months, with an extension for another 3 months. Alternatively, NCLT appoints an interim administrator who will try to sell the assets of the company to a new owner within 18 months.

 

 

770 mm

 

What is it? Rainfall received at Mount Abu, a hill station in Rajasthan, in 24 hours.

Why is it important? This is the highest ever rainfall received by Mount Abu ever since rainfall data was collected. Extreme rainfall events like these in a desert state is attributed to increase in temperature and its impact on monsoon.

Tell me more: Mumbai received 944 mm of rainfall in July 26, 2005 that killed 1,094 people. In 2015, Chennai and two adjoining districts received 1,049 mm of rainfall.

 

 

24

 

What is it? The number of protected monuments that have disappeared due to encroachment.

Why is it important? Shows laxity in protecting the historical monuments. Archaeological Survey of India is empowered to issue show cause notice to encroachers, and can also direct district authorities to remove encroachments.

Tell me more: 11 out of 24 lost monuments were from Uttar Pradesh. Government has spent Rs 301.7 crore in protecting monuments in 2016-17.

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Privacy: Our new fundamental right?

Rs 18,000 crore

What is it? The minimum additional amount Indian banks need to provide towards taking 12 of the country’s largest defaulters to bankruptcy court as directed by the central bank, according to India Ratings and Research.

Why is it important? The current weighted average provisioning of the banks towards these 12 accounts is 42% and the rating agency forecasts that this would reduce the banks’ profits by 25% in 2017-18. The Reserve Bank of India has asked the creditor banks to provide for 50% of the bad loans on cases that are being referred to the National Company Law Tribunal.

Tell me more: The non-performing assets of India’s 12 largest defaulters amount to Rs 1.78 lakh crore, which constitutes about a quarter of the overall gross non-performing assets.

 

15,000

What is it? The number of employees, including contractors, of Air India that could be offered a Voluntary Retirement Scheme (VRS).

Why is it important? If implemented, this would be one of the largest such offers among India’s public sector companies and comes ahead of its likely sale in the future. The Narendra Modi cabinet recently gave its approval to sell a part or all of the state carrier’s operations. Air India, which has a debt of Rs 50,000 crore and a 14% market share, has been struggling to get off the ground.

Tell me more: Air India’s net tax after loss narrowed by around 5% to Rs 3,643 crore in 2016-17 while its operating profit grew nearly threefold to Rs 300 crore in the same fiscal.

 

Rs 211.7

What is it? The median hourly gross salary for manufacturing sector in 2016, according to Monster Salary Index by online recruitment portal Monster India.

Why is it important? Not only did it see a 16% decline from Rs 252.1 in 2015 but it was also the lowest paying sector last year among those analysed. This indicates that the government’s plans to transform the country into a manufacturing hub and increase the sector’s contribution to the Indian economy to a quarter from the current 16% by 2025 may not be going as intended. The sector employs around 12-13% of the workforce.

Tell me more: The banking, financial services and the insurance sector was the highest paid in 2016 with Rs 433 as median hourly gross salary followed by the IT services at Rs 386.8.

 

9

What is it? The number of Supreme Court judges on the Constitution bench that will decide whether Indian citizens have the right to privacy under the Constitution or not, starting from  Wednesday.

Why is it important? The five-judge Constitution bench deliberating on Aadhaar Act’s possible violation of a person’s right to privacy, felt it had to be first determined if privacy was one of our fundamental rights. Fundamental rights are guaranteed Indian citizens by the Constitution, but the right to privacy is not mentioned explicitly. This is why the Supreme Court is attempting to interpret the Constitution to determine the right, much like the freedom of press.

Tell me more: Past rulings have not favoured citizens’ privacy. The former attorney general of India, Mukul Rohatgi, has maintained since 2015 that Indian citizens don’t have a fundamental right to privacy. In 1954 and 1962, Supreme Court judgements, by smaller sized benches (eight- and six-judge) had held privacy was not a fundamental right. Debates around privacy say it is a non-negotiable right.

 

Rs 1.2 to 6 lakh

What is it? The monthly salary range amount quoted by specialist doctors to work in rural Karnataka. The state government has invited doctors to quote their price to fill 1,221 vacant jobs.

Why is it important? The bidding by specialists reveal the salary expectations by specialist doctors like anaesthetists, gynaecologists and obstetricians, as compared to standard government package. Obstetricians and gynaecologists quoted the highest at Rs 6 lakh per month, and the lowest salary bids were from general surgery, orthopaedics and general medicine (Rs 60,000 to Rs 1.2 lakh).

Tell me more: So far, 5,262 doctors have applied. Here too Bengaluru attracted the maximum applications.

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