Home » Ministries » Finance » India tops among emerging Markets but corporate health and Public Banks need to be checked
Photo Courtesy- tapnewswire.com
Photo Courtesy- tapnewswire.com

India tops among emerging Markets but corporate health and Public Banks need to be checked

India has topped among best emerging markets but the country needs to discuss about the increasing stress and vulnerabilities of corporate finances and asset quality difficulties of state-run banks to sustain the recovery process, said the International Monetary Fund (IMF).

  • The corporate finance vulnerabilities only will increase if not being addressed said IMF’s financial counselor Jose Vinals. However Mr. Vinals said that in order to sustain the increasing growth as well as controlling the inflation in the coming future, the balance sheets of the public banks need to be completely cleaned up. He further added that the government needs also to support reforms in the power and mining sectors.
  • The corporate profits are a 10-year low and the stressed assets are over 14% with the public sector banks vulnerability only adding problems to this. These remarks came right after a complete cleaning up of the balance sheets by the lenders which witnessed the listed banks’ NPAs getting a rise by Rs. 1 trillion in the end of 2015.
  • However, Mr. Vinals also said that India is moving towards the right direction and despite the world witnessing a sluggish growth due to Chinese Yuan’s downfall; the country will continue to have a good growth this year. He also said that the policymakers must be vigilant in forming financial policies keeping the corporate financial stress in mind.

(Source: ET)

Check Also

PC: tutorialspoint

Disha: For Timely Implementation of Center Government Schemes

Centre announced the formation of District Development Coordination and Monitoring Committee (DDCMC) to be named ...

Leave a Reply

Your email address will not be published. Required fields are marked *