Wednesday, June 3, 1998
"Ministry encouraging defaults in farm loans by allowing NPA write-offs"
Senior bankers have interpreted the finance ministry's move to offer "appropriate relief on accumulated interest" on farm loans as a political decision which will impact banks' bottomlines. Besides, ministry's move to allow banks to write off the non-performing assets, is also expected to encourage defaults in farm loans.
Confusion over petrol price hike leaves refining firms in limbo
The confusion over the petrol price hike left the three refining firms -- IOC, BPCL and HPCL -- in a state of uncertainty. It is reported that Union ministry of petroleum and natural gas has indicated that petrol would be dearer by nearly Rs 4, comprising the petrol tax and the revised excise duty on motor spirit to 35% from 20%.
Foreign insurance firms await Sinha's clarification
Foreign insurance firms have expressed doubts on whether they would be allowed to team up with the Indian private sector even with a minority shareholding. Representatives of these firms are awaiting clarification from the government on what it meant by throwing open insurance business to private Indian companies.
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