Narendra Modi Sarkar expected to reform the bureaucracy during its second term. Govt likely to wait for Q2 results to announce bank recapitalization. Ather Energy raises $51m in its latest round of funding. IndiGo, SpiceJet, Vistara and other rivals shine on back of Jet Airways crisis. Uber riders in the US and Canada with low ratings may be booted from the app. Fiat Chrysler-Renault merger stirs criticism in France. SBI to cash in on the NBFC crisis, set to build its mortgage and small business loan book as the non-banks are forced to pull back. SFIO investigates why questions raised by a junior analyst at a rating agency about financial irregularities at IL&FS were ignored.
Moving on to the top Business news today:
Narendra Modi Sarkar expected to reform the bureaucracy during its second term. Govt likely to wait for Q2 results to announce bank recapitalization.
“Minimum Government, Maximum Governance”: Narendra Modi in his second term as the Prime Minister of India is expected to deliver on his promise of “minimum government, maximum governance”, by pruning multiple administrative departments.
As per reports, Modi is expected to merge departments such as Department of Public Enterprises, Department of Land Resources with other relevant ministries. He may also create umbrella energy and infrastructure ministries merging a number of ministries together for better synergy.
The Modi government may also be forced to fill up a large number of government vacancies, thus further bloating the bureaucracy.
Not So Soon: As per the Ministry of Finance, the newly-elected government will wait for the Q2 results to announce any bank recapitalization plans.
The previous government has already completed the mega-bank recapitalization of INR2.11tr, which it had announced in October 2017.
The government meanwhile expects three to four banks to come out of prompt corrective action framework (PCA) which puts restrictions on big-ticket lending, dividend payouts and branch expansion.
There are currently five banks under the framework. Five banks have been able to come out of the framework with the help of government’s capital.
Moreover, the state-run lenders have recovered more than INR1L cr in FY19 through the resolution of bad loans. Further recovery from the resolution of bad assets will help the banks in raising capital and lessening their need for government’s capital.
The Indian airlines carried 10.96 million passengers during April 2019, a 4% drop from April 2018.
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