'Current Account Deficit will be contained at 60 billion dollars': Chidambaram

New Delhi, Nov.1 (ANI): Finance Minister P Chidambaram on Thursday said that the Current Account Deficit (CAD) is under control, and will be contained at 60 billion dollars.

"Current Account Deficit shall be contained at 60 billion dollars. It is well under control, and I am confident we will be able to adhere to red line for fiscal deficit. Earlier current account deficit target was 70 billion dollars," he told media here today.

"There has been a sharp pick up in exports in last three months. Trade balance will be well contained, and it will reflect on current account deficit," he added.

He further said that inflation and reviving investments are key challenges for the government.

"We are confident that the steps taken by the Reserve Bank of India (RBI) will bring moderation in inflation," he said.

"The rupee has by and large stabilised, though in my personal opinion it is still trading above its appropriate level. The stability in currency markets will give comfort to take more measures,' he added.

Chidambaram also cautioned the investors against exuberance over market rally.

"Investor confidence in India remains intact. I would caution investors against excessive exuberance over market rally," he said.

He also said that the Foreign Direct Investment (FDI) inflows have been encouraging.

"Looking forward to more FDI inflows in pharmaceutical sector, single brand retail, multi brand retail and telecom sectors," he added.

The BSE Sensex hit an all-time high today breaking its earlier record of 21,206, which was set in January 2008.

The Sensex set a new all-time high record of 21,293.88, up nearly 130 points. The Nifty gained 8 points to close at 6,307. (ANI)

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Be ready for US tapering: Chidambaram to officials

New Delhi, Oct 24 (IANS) Finance Minister P. Chidambaram Thursday asked Indian financial sector regulators to take concrete measures to avoid any adverse impact of the US stimulus tapering, saying it is likely to happen sooner or later.

Addressing the eighth meeting of the Financial Stability and Development Council (FSDC) here, Chidambaram said the "opportunity available due to the postponement of the reversal of the monetary policies in advanced economies should be utilised to further address the macroeconomic imbalances".

During the meeting, Chidambaram emphasised that tapering off of Quantitative Easing (QE) in the US is likely to happen sooner or later and, as such, regulators must take all possible concrete measures to avoid any adverse impact on the Indian economy, an official statement released after the meeting said.

Top financial regulators, including Reserve Bank of India governor Raghuram Rajan, finance secretary R.S. Gujral, economic affairs secretary Arvind Mayaram, financial services secretary Rajiv Takru, and Securities and Exchange Board of India (SEBI) chairman U.K. Sinha, attended the meeting chaired by the finance minister.

The US Federal Reserve last month surprised the markets by deciding to continue with monthly $85 billion bond-buying programme, known as Quantitative Easing (QE) intact, after nearly three months of speculation that had battered the Indian as well as other emerging markets currencies and stocks.

According to a statement released by the finance ministry, the FSDC deliberated on the implementation of the recommendations of the Financial Sector Legislative Reforms Commission; impact of tapering off of the Quantitative Easing in the US and preventive measures to be taken, among other things.

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Chidambaram expects credit growth in public sector banks to be 'satisfactory' for rest of the year

New Delhi, Oct. 22 (ANI): Finance Minister P. Chidambaram on Tuesday said that the credit growth in public sector banks has been 'satisfactory', and added that he expected it to remain so, for the rest of the fiscal year.

"Credit growth has been satisfactory in the first quarter of this year - June 2013 over June 2012. Overall, credit growth has been 12.08 percent for the public sector banks. Anything that I say is only concerning the public sector banks. So, we think, that credit growth will be satisfactory for the remaining part of the year too," Chidambaram said.

Chidambaram also termed the rise in bad loans at banks as 'unacceptable', and said that he expected their Non-Performing Assets (NPAs) to come down when the pace of economic growth picks up.

"I have expressed my concern about the NPAs. NPAs is a function of the slowdown in the economy. NPAs have indeed increased, but, I want to point out that the tremendous improvement has taken place in the banking sector in the last 12 or 13 years," Chidambaram said while lauding the improvement in the banking sector in recent years.

A slowing economy has adversely affected the demand for credit and led to a rise in bad loans in banks of the country. Rising bad loans have made banks wary about lending, thus impeding the supply of domestic credit.

Net NPAs to net advances ratio of state-run lenders slipped to 1.8 percent at end-March 2013 from 1.5 percent a year earlier. (ANI)

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Chidambaram asks banks to go after 'big' loan defaulters

New Delhi, Oct 22 (IANS) Finance Minister P. Chidambaram Tuesday asked public sector banks to closely monitor big borrowers with loan amounts of over Rs.1 crore, who also constitute the bulk of the non-performing assets (NPA) of the lenders.

Talking to reporters after meeting heads of the public sector banks here, Chidambaram said growing cases of defaults among big borrowers were a matter of concern.

"It is a matter of concern that it is the big borrowers who are defaulting," the finance minister said.

Chidambaram said he has asked lenders to closely monitor top 30 NPA accounts in each zone of all the public sector banks.

Deteriorating asset quality, or rising NPA, is a big concern among the Indian banking sector. Gross NPAs of Indian banks are expected to reach 4.4 percent in the current financial year as compared to 3.4 percent in the previous year.

The finance minister said NPAs were rising due to difficult economic situation and the situation would improve with the pick up in growth.

Chidambaram advised banks to set up separate verticals dedicated to recover the bad loans that have been written off.

"Banks have been advised to empower or set apart an officer of senior rank, at least of general manager rank, to look at recovery, especially recovery from written-off accounts," he said.

The country's largest lender State Bank of India (SBI) has already set up a separate vertical for recovery of bad loans. The finance minister asked other government-run lenders to set up the dedicated entity in line with SBI.

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Chidambaram to meet bank chiefs Tuesday

New Delhi, Oct 21 (IANS) Finance Minister P. Chidambaram will meet chairmen and managing directors of public sector banks Tuesday to review their performance, especially the situation of non-performing assets and credit growth.

The meeting will take place at the State Bank of India (SBI) main branch office in the national capital.

Chiefs of financial institutions will also attend the meeting.

According to official sources, asset quality and credit to the targeted sectors, including agriculture and education loans, will be among the important points to be discussed in the meeting.

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India will fully finance Current Account Deficit: Chidambaram

Bangalore, Oct.5 (ANI):Finance Minister P.Chidambaram said Saturday that the country would finance its Current Account Deficit fully in fiscal 2013-14 without drawing down on its reserves.

Chidambaram said he is confident of economic growth and India would be able to contain the Current Account Deficit.

"The confidence comes from my knowledge of the numbers. The confidence comes from the fact that gold imports have sharply compressed in the months of July, August and September. For example in April, May, June we imported 335 tonnes of gold. In July, August and September, I think the number has come down to about 65 or 70 tonnes. My confidence comes from the fact that exports have picked up briskly and smartly," he said.

The Current Account Deficit grew less than expected in the June quarter and is tipped to ease in coming months as a pick-up in exports and lower gold imports improve the trade balance, offering relief to the battered rupee.

On Tuesday, Economic Affairs Secretary Arvind Mayaram said the country would contain the fiscal deficit at 4.8 percent of GDP and added that the government would not have to go beyond the finance ministry's planned market borrowing for the year, and would be able to meet its budgeted revenue target.

The Current Account Deficit (CAD) for the three months through June was USD 21.8 billion, or 4.9 percent of gross domestic product, driven by sluggish exports and high gold imports in April and May before the government hiked tariffs on the metal to a record 10 percent.

Meanwhile, slowing economic growth has dampened tax revenues, making it tougher for the government to hit its fiscal deficit target of 4.8 percent of GDP for the financial year that ends in March.

Economists are now split over whether new Reserve Bank of India (RBI) chief Raghuram Rajan will hike rates again at the central bank's next policy review on October 29.

Many did not anticipate Rajan's focus on curbing inflationary pressures despite growth languishing at a decade-low.

Furthermore, Chidambaram also spoke in detail about the Forward Markets Commission (FMC) issuing show cause notice to FTIL (Financial Technologies (India) Limited).

"FTIL (Financial Technologies (India) Limited) which is a promoter is also under the watch both by the Ministry of Company Affairs and by the two regulators. While NECL (National Spot Exchange Limited) as I have said it is a company. It is not a regulated entity. They are in court. I wish the depositors or the lenders or investors the best. They should exercise and establish their rights under court of law. And those who have committed any errors, I don't know, they will be answerable to those who have put their money in NECL," added Chidambaram.

FMC has alleged that even though borrowers had defaulted on earlier loans, they were allowed to raise money on the NSEL platform.

The FMC on Thursday barred the National Spot Exchange (NSEL) and group firms from auctions of commodities held by the stock exchange after a complaint that firms related to the former Managing Director took part in the bidding process. (ANI)

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