Covid lockdown threatens to result in balance sheet impairments, capital shortfalls at banks: RBI

News Network
January 11, 2021

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Reserve Bank Governor Shaktikanta Das said the Covid-19 pandemic "threatens" to result in balance sheet impairments and capital shortfalls at banks, especially once regulatory reliefs are rolled back.

In his foreword to the bi-annual Financial Stability Report (FSR), Das said easy liquidity and financing conditions have shored up the financial parameters of banks, but made it clear that the "available accounting numbers obscure a true recognition of stress".

He asked banks to exploit the current conditions to augment capital and also alter their business models, which will help in the future.

The RBI had declared a six-month moratorium which ended in August and later announced a one-time loan recast package to help borrowers. Many banks, especially the private sector ones, have already raised safety capital in the early days of the pandemic.

Fiscal authorities are witnessing revenue shortfalls and the resultant expansion in the market borrowing programme of the government has "imposed additional pressures on banks", Das said.

The disconnect between certain segments of financial markets and the real economy has been accentuating in recent times, he said, warning that the stretched valuations of financial assets pose risks to financial stability.

Das asked banks and financial intermediaries to be cognisant of these risks and spillovers in an interconnected financial system.

Financial stability is a precondition for supporting the mission of restoring economic growth and livelihoods, Das said, conceding that "we have been scarred by the COVID-19 pandemic".

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News Network
March 21,2024

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Mangaluru: A man from Dakshina Kannada was duped of Rs 2.5 lakh after he was promised a Poland visa.

In a complaint, a resident of Belthangady, stated that the accused, Manoj, had promised a job for his son in Poland. 

Between May 22 of last year and March 19, he handed over Rs 2.2 lakh in various phases, citing different reasons.

However, since the accused failed to provide a visa or return the money, a case was registered at the Dharmasthala police station under IPC sections 417 and 420.

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News Network
March 28,2024

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Russia says it is "extremely hard to believe" that Daesh could have staged the recent hugely deadly attack on a Moscow concert hall that the country's intelligence and security officials have blamed on Ukraine and its Western backers.

Four gunmen burst into the Russian capital's Crocus City Hall on Friday and began shooting at the people, who were attending an event. The Takfiri terrorist group has allegedly claimed responsibility for the massacre that killed at least 143.

Speaking on Wednesday, however, Russian foreign ministry spokeswoman Maria Zakharova cast that claim into serious doubt.

"In order to ward off suspicions from the collective West, they urgently needed to come up with something, so they resorted to ISIS (Daesh), pulled an ace out of their sleeve, and literally a few hours after the terrorist attack, the Anglo-Saxon media began disseminating precisely these versions," she said.

The chief of the Russian internal intelligence (FSB), Alexander Bortnikov has suggested that not only Ukraine, but also the United States and Britain might have been behind the shooting.

The Russian Federal Security Service has also said the gunmen planned to travel to Ukraine, where they were to be welcomed as "heroes." The FSB said Western intelligence services aided the attackers.

Russian President Vladimir Putin has also suggested that Ukraine stood to derive benefit from the attack and that Kiev might have played a role.

He has said that someone on the Ukrainian side had prepared a "window" for the gunmen to escape across the border before they were captured in western Russia on Friday night.

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News Network
March 21,2024

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New Delhi, Mar 21: Election Commission (EC) on Thursday directed the Ministry of Electronics and Information Technology of Narendra Modi-led government to put an end to bulk WhatsApp messages labelled 'Viksit Bharat Sampark.' It has also sought a compliance report immediately from the ministry.

EC had received several complaints that such messages are still being delivered on citizens’ phones despite the announcement of Lok Sabha elections and the model code of conduct (MCC) entering into force.

In response, the govt informed the commission that although the letters were sent out before MCC came into force, some of them could have possibly been delivered to recipients with a delay because of systemic and network limitations.

In the past few days, several WhatsApp users have received messages from 'Viksit Bharat Sampark' seeking feedback and suggestions from the public. 

The message comes with a PDF that has a letter from Prime Minister Narendra Modi mentioning government schemes like Pradhan Mantri Awas Yojana, Ayushman Bharat, Matru Vandana Yojana, etc, and seeking suggestions from the citizens over government initiatives and schemes.

The letter which addresses users as 'my dear family members' had sparked political controversy. Congress has called the PDF file attached with the message a ‘political propaganda’.

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