In Wake of PNB Scam, Goldman Sachs Slashes India’s Growth Forecast

first_imgThe $2 billion fraud involving jeweler Nirav Modi at the Punjab National Bank (PNB), which sent the state-run bank’s shares tumbling, has also led investment bank Goldman Sachs to slash its forecast for Indian economy.Goldman Sachs, in a note to its clients on March 20, lowered India’s gross domestic product (GDP) forecast for the year up to March 2019 from 8 per cent to 7.6 per cent, Reuters reported.The PNB scam, along with other smaller loan frauds reported by other banks in the following weeks, is fueling growing concerns that credit growth is unlikely to pick up quickly when state-run banks are down with a mountain of bad debt. These banks make up for two-thirds of banking assets in India and were directed to check their bad loans by the government in the wake of Punjab National Bank scam.Shares in the state-run Canara Bank fell as much as 5.4 per cent on March 20 as its former chief and others were mired in allegations that the officials helped a company defraud the bank of about $10.5 million taken in loans over four years ago.Goldman, in the note, said it feared a regulatory crackdown after the PNB fraud. “Markets and investors are questioning whether the problem is more systemic,” Goldman analysts wrote in the note.  They further added that markets feared the fraud would likely offset some of the positive effects of the bank recapitalization and hit overall credit, investment and GDP growth. This is a setback for the Narendra Modi-led government, which had set aside $32 billion for two-year bank recapitalization program announced last year.India had regained its status as the world’s fastest growing major economy in the October-December quarter, overtaking China, as it grew 7.2 percent, which was its fastest in five quarters. Goldman said its analysts believe the Punjab National Bank was likely to bear the brunt of the entire $2 billion of the fraud amount, exhausting more than a quarter of its net worth.It added that Indian banks would need to take 60-65 per cent average haircuts on impaired loans over the next two years, which is more than the 50 per cent it had assumed earlier, and so overall provisions would rise. Related ItemsEconomyGoldman SachsPunjab NAtional Banklast_img read more

Alaska News Nightly Thursday August 20 2015

first_imgStories are posted on the APRN news page. You can subscribe to APRN’s newsfeeds via email, podcast and RSS. Follow us on Facebook at alaskapublic.org and on Twitter @aprn.Download Audio Second body recovered from slide, crews hone in on the thirdRachel Waldholz, KCAW – SitkaSearch crews have recovered two bodies from the Kramer Avenue landslide in Sitka.  One man remains missing but search dogs have alerted to a third location on the south side of the slide, where work focused this afternoon.To stand a fighting chance, anti-Medicaid lawsuit needs to show irreparable harmAnnie Feidt, APRN – AnchorageMedicaid expansion is set to roll out in Alaska September 1st. It would offer health coverage to 40,000 very low-income adults who don’t have children. The lawmakers suing to stop expansion will ask a judge for a preliminary injunction. That would prohibit the state from implementing the program before the issue is decided in court. Both sides of the lawsuit have specific points they need to prove to win the case.NOAA: whale deaths in the Gulf are three times the averageAssociated PressA federal agency has announced plans for a more intense investigation into what caused the deaths of 30 large whales in the western Gulf of Alaska since May.As fur seal numbers in the Aleutians decline, one population is curiously thrivingJohn Ryan, KUCB – UnalaskaA team of scientists with the National Marine Fisheries Service is on an isolated island in the Aleutian chain. Or, to be more precise, they’re a bit north of the chain. They’re researching an exploding population of fur seals on tiny Bogoslof Island.Flint Hills refinery asks for loosened cleanup standards Dan Bross, KUAC – FairbanksFlint Hills continues to push for a less stringent standard for removal of a spilled chemical from groundwater at the company’s shuttered North Pole refinery.Transforming teaching: Nanwalek School received Apple tech grantShady Grove Oliver, KBBI – HomerFor students and teachers in the village of Nanwalek, this academic year will likely be very different from years past. They are the recipients of a technology grant from Apple that could change the face of education in the village entirely.Storyworks: Refugees share their journeysAnne Hillman, KSKA – AnchorageEveryone has a story to tell, but it may not be the story you’d expect. An Anchorage non-profit called StoryWorks is helping teenagers find their stories, and this summer they focused on students who arrived in the state as refugees.last_img read more