Banks' Bad Loans: From Non-Performing to Non-Existing!

Monday, July 24th, 2023

Good Afternoon ☕

Indian banks have waved goodbye to a whopping Rs 2.09 lakh crore (that's around US $25.50 billion) in bad loans during the year that ended in March 2023. Looks like the banks in India have been playing 'Loan Write-Off Bingo'! It's like they are on a mission to see how many zeros they can add to that amount!

But wait, there's more! If you think that's a big number, you'll be amazed to know that over the last five years, these banks have bid farewell to a jaw-dropping Rs 10.57 lakh crore in bad loans. That's enough to buy a whole fleet of private jets or build a mountain of ice cream sundaes!

Important News of the Day

1. Banks write off ₹2.09 lakh crore bad loans in FY23

According to a report by the Reserve Bank of India (RBI), banks in India wrote off bad loans worth over Rs 2.09 lakh crore (around US $25.50 billion) during the year ended March 2023, taking the total loan write-offs to Rs 10.57 lakh crore in the last five years. In the first nine months of FY23, public sector bank loan write-offs dropped due to 100% provisioning and a decrease in the creation of non-performing assets. The total amount of bad loans written off by scheduled commercial banks in the last five fiscals (2017-22) is Rs 10,09,511 crore.

2. Govt officers eligible for personal use of electronic devices up to ₹1.3 lakh

The Indian government has increased the limit for personal use of electronic devices by government officers from Rs 50,000 to Rs 1.3 lakh. The move is aimed at enabling officers to work more efficiently and effectively. The new limit applies to all government officers, including those in the Indian Administrative Service (IAS), Indian Police Service (IPS), and Indian Forest Service (IFS). The government has also clarified that the devices purchased under the new limit will be considered government property and will have to be returned when the officer leaves the post. The move is expected to benefit around 50,000 officers across the country.

3. India Inks Semiconductor Deal With Japan

Vedanta Group has signed agreements with 30 Japanese technology firms to create an Indian semiconductor and glass display manufacturing ecosystem. The pacts were signed at the Vedanta-Avanstrate Business Partners Summit 2022 held in Tokyo, Japan. The summit was attended by more than 200 delegates from over 100 global companies. The company is committed to making India a hub for electronics manufacturing and creating the electronics industry ecosystem rather than just technology transfers. The summit saw interests from a host of companies eager to be part of the ecosystem for India’s semiconductor mission.

4. NHPC plans ₹1.76-tn pumped storage units

NHPC, a state-run hydropower company in India, plans to invest INR 1.40-1.76 trillion ($25.8 billion) in pumped hydropower storage projects. The company aims to establish capacities of 20,000-22,000 MW across India. NHPC has signed a Memorandum of Understanding (MoU) with the Maharashtra state government to develop four pumped storage projects with a total capacity of 7,350 MW. This investment is part of the surging development of pumped hydro storage in India, with other companies also pursuing similar projects. The goal is to enhance energy storage capabilities and support the growth of renewable energy in the country.

Entrepreneur of the Day👨‍💼

In the bustling city of Delhi, MOPP Foods (Mad Over Parathas & Pakodas) emerged as a dream-turned-reality for its founders, Gaurav Gupta and Geetika Anand Gupta. It all began with Geetika's desire to introduce her son to the delightful flavors of traditional pakoras and parathas. Drawing upon their combined expertise of two decades, the couple decided to launch a food company that not only offered these cherished dishes but also a delectable array of other North Indian breakfast delights. Founded in 2020, MOPP Foods swiftly gained a reputation as the go-to place for authentic and mouthwatering Indian breakfast options in the city.

Among the company's signature offerings was their famous Aloo Paratha, a flavorful Indian flatbread filled with spiced potatoes. Made with whole wheat flour and cooked on a griddle, these parathas boasted a tantalizingly crispy and flaky texture. MOPP Foods also tantalized customers with other paratha variations like Onion Paratha, Gobhi Paratha, Mooli Paratha, and Egg Paratha. Not stopping at parathas, the company's menu featured an extensive selection of traditional Indian breakfast items such as Idli, Dosa, Upma, and Poha. MOPP Foods took great pride in sourcing all their ingredients from local farms, ensuring the highest quality and authentic taste in every bite.

What truly set MOPP Foods apart from the rest was its unwavering commitment to sustainability and the use of locally sourced and organic ingredients. By embracing eco-friendly packaging and implementing a recycling program, they aimed to minimize their impact on the environment. Operating numerous food trucks and street food stalls across Delhi, the company was not only accessible to locals but also catered to events, parties, and corporate gatherings. Their dedication to preserving Indian culinary heritage, while embracing modern values of sustainability and convenience, made MOPP Foods a beloved and respected player in the Delhi food scene.

In the captivating episode of Shark Tank India Season 2, MOPP Foods showcased its innovative cloud kitchen platform and sought an investment of Rs. 75 lakhs for 2.25% equity. Despite facing skepticism about their multi-tier business approach, the Sharks were won over by the incredible taste and texture of their offerings. While some investors backed out, Amit Bhatia showed interest and eventually struck a deal, investing Rs. 50 lakhs for 5% equity, with no debt involved. This successful partnership marked another milestone in the journey of MOPP Foods, solidifying its position as a company that not only celebrates India's culinary heritage but also embraces innovation and sustainability for a promising future.

Breaking News: The Scoop You Can't Miss!

1. EESL enters into several partnerships at Clean Energy Ministerial meeting

The Energy Efficiency Services Limited (EESL) has entered into several partnerships at the 14th Clean Energy Ministerial meeting. The partnerships focus on critical areas such as super-efficient cooling and heating solutions, integrated energy efficiency, and ceiling fans market transformation programs. CLASP, an international non-profit organization, has also collaborated with EESL to support the ceiling fans market transformation program with technical assistance and capacity building. The partnerships aim to accelerate India's net-zero transition and mobilize investments to demonstrate clean technology and enable green collaborations. The partnerships are expected to bring in INR 700 crore in investments.

2. ‘Sensitivities over tech transfer will persist for some time to come’

According to a former diplomat and current US-India Business Council chief, sensitivities over technology transfer will persist for some time to come. This is a concern related to the specific issues related to technology transfer to the city, i.e., urban public services. There has been a strong need to identify and evaluate critical factors of effective technology transfer process in Indian perspective. The process of transferring perceptions on choice of activities, effort, and persistence is complex. A case study in Liaoning, China, identified the implementation effect of technology transfer policy using system dynamics.

3. Tata has placed the UK on the starting grid of today’s EV race

Tata Motors has announced plans to build a $5.2 billion electric vehicle (EV) battery factory in the United Kingdom. This investment is considered the largest in the UK automotive industry in decades and is expected to create 4,000 jobs. The factory will be used to supply batteries for Tata's Jaguar Land Rover (JLR) cars. The decision to establish the factory in the UK is seen as a significant development for the country's car industry. This move by Tata Motors puts the UK on the map in the global EV race and highlights the growing importance of EV manufacturing and infrastructure.

World News 🌎

• 'Imran Khan responsible for economic crisis in Pakistan' says Pakistan PM

• Focus on China dominated Biden-Modi meeting in Oval office, reveals official

• US reinforces presence in South Korea with deployment of another submarine

• US obstacle to international recognition of Afghanistan: Taliban

• NATO-Ukraine Council meeting on Wednesday, likely to discuss Black Sea security

• Sudan air crash: 9, including 4 soldiers killed due to technical failure

• Flash floods, landslides in Afghanistan and Pakistan due to heavy rains, several dead

• Russian strike ‘severely damages’ historic Odesa cathedral, leaves one dead

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