[ESB16] Economic Survey → Banking → Twin Balance-sheet Problem, Bankruptcy Code, BASEL Norms, NPA-Classification, Indradhanush Plan, Bank Board Bureau & More

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Prologue

  1. ESB161-P1: Overview of Economic Survey for UPSC-2016
  2. ESB161/P2: Twin Balance sheet problem, NPA, Insolvency & Bankruptcy Code 2015
  3. ESB161/P3: “4R” Solution to resolve Twin Balancesheet Problem
  4. ESB161/P4: BASEL Norms & Bank Recapitalization
  5. ESB161/P5: Indradhanush Plan to revamp PSB; Bank Board Bureau, Bank Consolidation

Prologue

  • Here starts this year’s lecture series on Economic survey and budget for various competitive exams in India.
  • The titles of these videos may look fragmented/incoherent, but they are part of the larger framework of “Banking” topic.
  • Powerpoints available under Mrunal.org/download (goto mediafire folder=>Economy=>Banking)

ESB161-P1: Overview of Economic Survey for UPSC-2016

Overview of Economic Survey

  • Six pillars of economy- (1) banking finance (2) budget (3) balance of payment (4) sectors of economy (5) Infrastructure (6) human resources Development.
  • Brief summary of all chapters of economic survey 2015-16 volume – 1 and volume –2.
  • Why should you read economic survey, even if their readymade notes and material is available?
  • 9 pillars of Budget 2016 for transforming India
  • Putting it all together: budget, economic survey into the six pillars of economy.
  • List of theory topics already covered under Banking sector
  • Chakravyuh Challenge in India economy: meaning and its three negative consequences (1) political cost (2) fiscal cost (3) economic cost

Youtube Link: https://youtu.be/g_YC3L3T-eA

ESB161/P2: Twin Balance sheet problem, NPA, Insolvency & Bankruptcy Code 2015

Insolvency and Bankruptcy Code

  • Twin balance sheet problem in public sector banks and large corporates India: what, why and how?
  • Classification of bank’s assets: standard asset, non-performing asset (NPA), substandard asset, doubtful assets, loss assets
  • RBIs new mechanism for early detection of stress and recovery of the non-performing assets: special mention accounts (SMA), joint lenders forum (JLF), corrective action plan (CPA) and central repository of information on large credits (CRILC) for loans worth Rs. 5 cr. And above
  • RBI “3R” Framework for Revitalizing Distressed Assets: rectification, restructuring, recovery
  • Sarfaesi Act: Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest – salient features and provisions related to debt recovery tribunals (DRT)
  • Insolvency and Bankruptcy Code Bill 2015: Salient features, appeal structure, statutory body for supervision
  • Budget-2016: new provisions for faster resolution of bankruptcy.
  • Corporate Balance sheet problems: top five contributors to Bank’s NPA: Textile, Mining, Steel, Infrastructure and Aviation
  • Why corporates are having difficult arranging new capital?
  • Consequences of twin balance sheet problem in (1) Public sector banks (2) Large corporates

Youtube Link: https://youtu.be/4Dhw6pR8s04

ESB161/P3: “4R” Solution to resolve Twin Balancesheet Problem

Twin Balancesheet problem

  • In the previous part, we learned about the twin balancesheet problem in public sector banks and large corporates.
  • Economic survey-2015:  “4R” solutions: Recognition, Resolution, Recapitalize, Reform
  • Economic survey-2014: “4D” solutions: Disinter, Differentiate, Diversify, Deregulate; Government plan to reduce shareholding in IDBI Bank ltd. Below 50%
  • BASEL norms are separately discussed in the next clip
  • Controversy regarding loan write-off by public sector banks – meaning, implications
  • Meaning of stressed assets
  • Supreme court vs RBI on disclosure of loan defaulters, and the need for separating NPA from Morality.

Youtube Link: https://youtu.be/GS9YJbXTlsA

ESB161/P4: BASEL Norms & Bank Recapitalization

BASEL norms for Bank recapitalization

  • Bank of International Settlement (BIS) and its Committee on banking supervision in BASEL city of Switzerland.
  • Technically wrong illustrations to simplify BASEL norms for laymen.
  • Understanding the requirement of minimum capital to risk weighed asset ratio (CRAR) of 9%; tier-1 and tier-2 capital of a bank
  • Requirement of additional 1.8 lakh cr. Capital for public sector banks (PSB) to comply with BASEL-III norms.
  • How this recapitalization will be provided by Government of India (Rs.70,000) via Indradhanush plan, and remainder as equity and debt.
  • How twin balance sheet problem is aggravating the recapitalization drive of public sector banks (PBSs)?

Youtube Link: https://youtu.be/OR9SrdijLc0

ESB161/P5: Indradhanush Plan to revamp PSB; Bank Board Bureau, Bank Consolidation

Bank Board Bureau (BBB)

  • Need for third set of Narshimhan Reforms in Indian banking sector.
  • Major recommendations of RBI’s P.J.Nayak Committee, Gyan Sangam-I, II and
  • Finance ministry’s Indradhanush Plan to revitalize public sector banks through seven pillars- appointment, BBB, Capitalization, destressing, empowerment, accountability framework and governance reforms
  • Concept of BIC-Bank investment company; how it’ll bring professionalism in the governance of Public sector banks?
  • Bifurcation of CMD posts in public sector Bank- its meaning and benefits
  • Bank Board Bureau (BBB): origin, structure, functions, controversy surrounding Ex-CAG Vinod Rai’s appointment.
  • Brief economy of the SBI associated banks, then bank consolidation – its benefits and opposition

Youtube Link: https://youtu.be/wkRmxVHlR0U
Next Lecture: Monetary policy updates.
Visit Mrunal.org/Economy for archive of previous lectures/articles on Economy.

Mrunal recommends

  1. (free) NCERT, NIOS, TN-Books
  2. Environment by ShankarIAS
  3. Indian Polity M.Laxmikanth (Hindi | English)
  4. Art & Culture by Nitin Singhania (Hindi | English)
  5. Spectrum: Modern History (Hindi | English)
  6. Bipin Chandra: Post Independence
  7. Fast-track to Arithmetic Rajesh Verma
  8. MK Pandey’s Analytical Reasoning
  9. Disha’s Topicwise Paperset (Hindi | English)
  10. School Atlas
  11. Mains: Language papers
  1. (free) NCERT, NIOS, TN-Books 4 History,Geo,Sci
  2. Indian Polity M.Laxmikanth (Hindi | English)
  3. Spectrum: Modern History (Hindi | English)
  4. Maths: Quantam CAT Sarvesh Kumar
  5. Objective General English SP Bakshi
  6. Word Power made Easy -Norman Lowe
  7. Topic wise Solved Paperset by Disha


So far 108 Comments posted

  1. harsharan singh

    thankxxx for this lectures sir….
    i m finding PPT’s of this lectures. but didnt get it

    economy ppts are there , bt ppt’s of these 5 lectures.
    i m unable to findout ..

    kindly someone help me …

      1. mohit

        there is no PPT for Economic survey 2015-16

      2. Ayush Sharma

        It doesn’t have complete PPTs of Economic survey and budget of this year. Can you please help.

  2. RNZ

    Welcome back. Glad to see your Lectures once again.

  3. Rocky

    sir ,, plz do india year book also . plzz sir

  4. VARUN

    thank u sir !! 🙂

  5. ashwani

    Jai Ho
    sir ki voice se he economic survey ka kaam Ho gya
    upsc me optoonal ka kaam Tamam
    Jai Ho

  6. Zahoor Ahmed Khawaja

    Thanks sir for this note making for competitive examination. …..

  7. Satya

    आखिर भगवान ने हमारी सुन ली मृणाल सर वापस आ गये वो भी अपने style मै

  8. sandeep

    thank you very much sir may god bless u

  9. DHEERENDRA TIWARI

    Mrunal Sir ,

    1-Thank You for making economic concepts so simple…
    2-Please try to provide videos of Geography lectures by Dr.Kevin Virani.

  10. Gyanesh Shukla

    Mrunal Sir, Plz upload remaining history lectures…

  11. Ias aspirant

    Please kindly make your videos available in English as well..kindly do this favour sir

  12. rajat pratap

    i want to read in hindi. how can i read?

  13. praveen_r

    How to download these videos. Error says, they are part of a playlist. How to download the entire playlist or individual videos from this playlist.

  14. ramu

    Thank you sir! much needed

  15. Yuvraj

    Was eagerly waiting for this. Finally, Prime is back… Thanks brother…

  16. PTD

    Thank you sir☺☺

  17. Shashank

    Too good..learned many things..thanks

  18. dheeraj

    Sir, Please post article on european migration crisis & global migration crisis

  19. omender

    thankyu sir, you are doing a great job

  20. vis

    thanxxxxx a lot sir!!! history ke videos aap plz bache hue upload kr dein!! agian infinite thanxx sir!! u r such a god of economics!!!

  21. ABHISHEK

    anyone here who can suggest me , how to prepare for gs – 3?

    1. Illeana

      First read 11th and 12th Economy NCERT books. Follow The Hindu newspaper+Yojana. Economic Survey, Union Budget, govt websites, govt schemes etc.

  22. kunal gupta

    sir plz post some more videos on modern indian history and some on ancient india plzzz sir..upload these videos as soon as possible..and thnk u sir for evry thng…

  23. Karim Khan

    Has anyone read economics summaries from Civilsdaily? how do you compare that with mrunal’s?

  24. Mrutyunjay Joshi

    got doubt in Economics..?? God is here… Thanks sir

  25. Mrutyunjay Joshi

    Respect Sir,
    If possible please continue the series of Indian history which is paused at 1875 revolt…. please.!!

  26. Moon

    Sir if English subtitles/full length Posts are there, many of us would be benefiting sir . I am not able to understand the language, and feeling that i am missing the most valuable videos for economy. i even tried to learn and understand Hindi !! (sorry for our state where they banned Hindi in schools ). Am not getting full depth understanding from power points. Kindly do something for us sir. May be if you think you can.
    Thank you so much.

  27. rahul tiwari

    plz upload remaining history lectur, i am waiting

  28. Ak04

    When wil be civil service notification?

  29. Raunak

    Sir I can not find the powerpoint of the lectures. Please help and if possible do provide the link.

  30. sandy

    Thank You sir , this is a much needed respite . Though I have read page to page of ESI and Budget and made individual notes . But I had to listen to your views on this . Its indeed a much needed boost . Thank you Very much …. Big Fan of your work .

  31. Ak04

    Upsc CS notification out…total 1079 posts

  32. Ak04

    Hi…cs notification out. Total 1079 posts

  33. Krishna

    Csp notification is out. But whole notification is not visible. Can anyone share it please.?

  34. raj

    thanku, bhagwan ji

  35. sanskrita joshi

    Thank you sir. Really helped me to understand many things .

    Sir ,when you will post the next lecture?

  36. shahid

    Dear sir
    Is it possible to download all economy notes in PDF?
    Please guide..

  37. Ranjana

    Thank you for the lectures. They are helping immensely in understanding in a clear manner the concepts of otherwise complicated Economic Survey. Kindly complete the series.

  38. Apurv

    Thanx a lot sir for starting the ES series

  39. Leena Manglia

    Good to see u back posting economy lectures… Thank You sir ..
    found just 3 ppts ESB161_P1-P2-P3 … how to download others ?

    1. Brajesh

      please provide me the link of even these PPT of ESB series

  40. Dheeraj

    Thank You, a lot Sir.

    You are God to us.

  41. ABHISHEK KUMAR

    SARFAESI applies only to loans above how much amount and what is the criteria for maximum amount in case of DRT if i have claim of 1 lakhs rupee where i can move please reply if any one knows this.

  42. dsingh

    hello sir,
    if in CRAR requirement of 9% is reduced then how it is harmful for banks.
    As 7% of 120 ll be 8.4. so amount required by banks to comply with norms would be less.

    what i,m missing please tell me.
    thankyou in advance

  43. Vishal

    Hi Mrunal Sir,

    Thanks for the lecture on Economic Survey.

    I have watched all 25 ppt uploaded till now on You tube.

    Request you to upload the ppt lecture on this site which will be helpful for revision after watching the videos.

    Please do the needful.

  44. Shweta

    Thank you sir

  45. Suraj

    Mrunal sir,
    You are like a sun among many stars…your lectures are damn easy to digest……you made economics ridiculously simple..

    You are THE GOD OF ECONOMICS….

  46. PRASHANT

    Hello Sir,
    Sir I can not find PPT Economic Survey 2016. Please help and if possible do provide the link.

  47. Siva kumar

    Sir, please make the videos in English sir, so that you provide a level playing field to all of us. I would be really grateful to you if you could do so.

  48. Neha Sharma

    Hello Sir,

    I have been reading these article since 5-6 years. whenever i stuck with any concept of economy, i go through this site and brush up my all knowledge. you have been a great help to all the students like me.

    thank you so much.
    just one thing i need more clarity on basel norms, how it is relate or diff from RBI rules.

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