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August 26 | Updated on August 25, 2021

Weak banks' adequacy needs are RBI's headache: Govt

The Ministry of Finance has asked the Reserve Bank of India to come up with alternative methods to recapitalise weak banks in view of the Centre's inability to set aside funds for infusion in the banks. The need to chart out a fresh plan of action to enable the weak banks to meet the capital adequacy ratio (CAR) requirements has been conveyed to the RBI during the review meetings held with the banks by the Finance Secretary, Mr Ajit Kumar, during the course of the previous week.

'Monsoon likely to spur growth’

Good monsoon resulting in higher farm income is expected revive demand which in turn may ease the negative impact of current economic slowdown, said Mr Rakesh Mohan, Advisor to the Finance Ministry. Talking to newspersons after addressing the annual general meeting of Indian Banks' Association (IBA) here today, Mr Mohan said he expects the growth rate to be in line with the RBI projection of 6 to 6.5 per cent in the current year.

Tatas to hike stake in Tata Construction

In an effort to revive the ailing Tata Construction and Projects Ltd, the Tata group is hiking its stake in the company by converting its interest-free loans to equity. Top officials of the group are currently engaged in working out a detailed financial restructuring package for the company. Mr N.P. Sinha, Chairman of Tata Construction, said that once the restructuring package was ready, it would be placed before the Board for Industrial and Financial Reconstruction (BIFR). "We have got to make the networth positive through the financial restructuring. Otherwise we will not get orders and it will be difficult to turn around the company", Mr Sinha told Business Line.

Published on August 25, 2021

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