Latest news with #ShaktikantaDas
Time of India
12 hours ago
- Business
- Time of India
RBI eases norms for loans to projects like roads and ports
MUMBAI: RBI has eased regulations for project financing, which will make it less expensive for lenders to provide loans for infrastructure and industrial projects like roads, ports and power plants. The move acknowledges varying risk levels across sectors. The regulator has finalised its project finance guidelines, effective Oct 1, 2025, offering more flexible and sector-specific norms. Key changes include reduced general provisions for under-construction and operational projects. Penalties for project delays have also been eased. In the earlier draft, a delay beyond two years (infrastructure) or one year (non-infrastructure) attracted a 2.5% provision. Now, it's reduced to about 0.4% and 0.6% per quarter of delay, respectively. Projects financially closed before Oct 1, 2025, are exempt - unless there's a credit event or major loan restructuring. Instead of a flat 5% provision, commercial real estate (CRE) projects need 1.25% during construction and 1% when operational; CRE-residential housing requires 1% and 0.75%, while others need 1% and 0.4%. The definition of credit events is now clearer, excluding vague clauses like "NPV (net present value) diminution." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo It focuses on tangible signs like default, DCCO (date of commencement of commercial operations) extension, or financial stress. RBI has also simplified delay categorisation: Infrastructure projects can defer DCCO by up to three years; non-infra, including CRE and CRE-residential housing, by two. Also, financial closure means 90% of funding is legally committed, with regulatory approvals tied to milestones instead of closure date - offering more realistic compliance. The overall framework is more practical, aiding developers and lenders alike. The earlier draft norms were announced by then RBI governor Shaktikanta Das. His successor, Sanjay Malhotra, had announced that the norms would not enforced in FY25. Commercial banks with substantial project finance portfolios would have faced a sharp rise in provisioning requirements, directly impacting their capital adequacy and profitability had RBI stuck to the earlier provisioning norms. Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), which together hold more than Rs 16 lakh crore in project loans, were highlighted as among the most exposed to these draft norms Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
13-06-2025
- Business
- Business Standard
Closer scrutiny of independent directors likely amid IndusInd Bank row
The role of independent directors (IDs) on the boards of private banks may come under closer scrutiny following the blowout at IndusInd Bank. While the Reserve Bank of India (RBI) does take bank board deliberations into its annual inspections, the stress on governance premium and the events at IndusInd Bank may intensify the gaze on IDs, said multiple banking sources on the condition of anonymity given the sensitivities involved. 'One of the most important skills needed for being an effective board member is the ability to see beyond the presentations and connect the dots without getting lost in siloed topics. This skill is hard to come by and can only manifest when quality time is devoted to the role. Such people are in demand across the system,' said R Gurumurthy, who serves as ID on the boards of Arka Fincap and Religare (he was the head of governance at RBL Bank). A source said that the vetting process of IDs may become more intense. The role of IDs and boards was articulated by the then RBI Governor Shaktikanta Das in meetings held with the boards of state-run and private banks two years ago. The meetings stressed on governance, the role of the boards and supervisory expectations. They were a follow-up to Union Finance Minister Nirmala Sitharaman's announcement in Budget FY24 on the need to improve the standards of governance and investor protection in banking. Sitharaman had said the government would amend the RBI Act, 1934, the Banking Regulation Act, 1949, and the Banking Companies (Acquisition and Transfer of Undertakings Act), 1970. Das had held, 'it is necessary that independent directors are truly independent; that is, independent not only of the management, but also of controlling shareholders while discharging their duties. They are to always remember that their loyalty is to the bank and no one else; and are expected to ask pertinent questions and obtain the required information from the management before making decisions.' But he had also qualified: 'I am not advocating any confrontation but only stressing the need for the required level of alertness among all directors.' The events at IndusInd Bank also bring the observations made in the P J Nayak Committee to review governance of boards of banks in India (May 2014) into relief. It had noted that 'as the non-executive chairman is not an ID, a lead ID could play a helpful role in each bank board, and would be chosen by the board's IDs. Such a spokesperson for the independent directors could be a useful counterpoint in the board to the chairman and the chief executive officer.' The report also touched upon the 'fit-and-proper' criterion for IDs. At a minimalist level, fit-and-proper is 'an exclusion criterion'. Potential directors convicted of fraud or incoming investors who have been subject to major criminal penalties can be argued not to be fit and proper. This minimalist interpretation signifies who should be excluded rather than included. It also stressed that bank boards need to aim higher as an inclusion category, seeking talented professionals on boards and reputed investment funds as shareholders, for the governance and reputation gains that these would bring the bank. Reputed investment funds ask demanding questions of bank managements, and are known to exit when answers are unsatisfactory. Talented directors similarly improve board governance. 'Fit-and-proper cannot be the criterion for such inclusion, and needs to move to a more demanding threshold.'
Time of India
07-06-2025
- Business
- Time of India
Panel may be set up for creating local 'Big Fours'
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The government may set up a panel under corporate affairs secretary Deepti Gaur Mukerjee to prepare a framework to build an "enabling ecosystem" to create large home-grown chartered accountancy (CA) firms comparable to the 'Big Four,' people familiar with the development said. The plan follows a meeting by the Prime Minister's Office (PMO) on Friday to deliberate on creating a system where CA firms would be encouraged to pursue expansion and growth, they meeting was chaired by Shaktikanta Das, principal secretary-2 to Prime Minister Narendra Modi , and attended by senior officials from the PMO and the corporate affairs ministry , among planned panel will likely suggest changes required to the extant policy and regulatory frameworks to enable small firms to scale up through both local and global tie-ups, the people said. It could also review impediments currently discouraging firms to grow in the Big Four-EY, Deloitte, KPMG, PwC-along with Grant Thornton and BDO dominate the Indian audit ecosystem "With policy support, regulatory momentum, and entrepreneurial drive, it is realistic that India could produce its own Big 4 in this decade itself," said Rakesh Nangia, founder & managing partner at Nangia & Co LLP."Indian firms must invest in quality, governance, and global presence, while regulators must enable visibility and innovation," added Dinesh Kanabar, chief executive at Dhruva Advisors.
Yahoo
06-06-2025
- Business
- Yahoo
India explores creation of home-grown Big Four consulting firms
The Indian government is considering the establishment of home-grown consulting firms to rival the Big Four—Deloitte, PwC, EY, and KPMG, reported Moneycontrol citing government sources. The move is reportedly a bid to lessen dependence on foreign advisory firms and foster global capabilities in the professional services sector. A high-level meeting, chaired by Shaktikanta Das, principal secretary to the Prime Minister, has been scheduled for 5 June 2025, to deliberate on this initiative. The meeting will feature a presentation by Sanjeev Sanyal, a member of the Economic Advisory Council to the prime minister (EAC-PM), to evaluate the feasibility and devise a roadmap for creating Indian consulting majors with global standing. This initiative is expected to spark a broader conversation within the government on how to cultivate scale, quality, and competitiveness among Indian consulting firms. The context for this move is the growth of the Indian arms of the Big Four, which have seen their revenues soar, driven by demand from mid-market clients and government contracts. For the fiscal year 24, these firms reported a combined revenue of Rs388bn ($4.52bn) and are projected to exceed Rs450bn in FY25, outpacing the growth of some of their multinational parent companies. Government-related assignments, including project management, financial advice, support in disinvestment, PSU stake sales, and policy advice, have significantly contributed to this growth. 'These firms have become deeply embedded in the functioning of government and PSUs. The next logical step is to explore whether India can create its own champions in this space', Moneycontrol reported citing a source. The aspiration to build a domestic counterpart to the Big Four aligns with the government's broader vision of strategic self-reliance, particularly in areas such as tax consulting, digital governance, and infrastructure planning. The meeting is anticipated to outline potential policy interventions that could facilitate the scaling up of Indian players through reforms or targeted incentives for knowledge services. The sources stated: 'This isn't just about creating competition to the Big Four. It's about recognising consulting as an important industry.' India's professional services sector has seen significant evolution over the past decade, with digital adoption, expanding financial markets, and complex regulatory compliance needs driving growth. While the Big Four dominate the audit and advisory space, India also has mid-sized players like Grant Thornton Bharat, BDO India, and domestic firms such as Nangia Andersen and Dhruva Advisors. "India explores creation of home-grown Big Four consulting firms" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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First Post
06-06-2025
- Business
- First Post
Why India is considering its own 'Big Four' accountancy firms
The Prime Minister's Office (PMO) has reportedly called a meeting today to discuss the feasibility of developing large domestic consulting firms similar to the Big Four — Deloitte, PwC or EY, and KPMG. This comes as India wants to build self-reliance in the professional services industry read more India is trying to reduce dependence on foreign advisory firms. Representational Image/Pixabay India is mulling its own 'Big Four' accountancy firms. Currently, Deloitte, PwC or PricewaterhouseCoopers, Ernst & Young (EY), and KPMG dominate the professional services industry globally. The Big Four, along with Grant Thornton and BDO, also govern India's audit environment. Now, the Central government is exploring the feasibility of creating large domestic consulting firms similar to the Big Four. The Prime Minister's Office (PMO) is reportedly holding a meeting today (June 6) to discuss the proposal. STORY CONTINUES BELOW THIS AD Let's take a closer look. PMO's key meeting On Thursday, the PMO called a meeting to deliberate on the possibility of developing homegrown accountancy firms equivalent to the Big Four, as per a Moneycontrol report. The key meeting will be headed by Shaktikanta Das , principal secretary to the Prime Minister. Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC-PM), is slated to give a presentation to analyse the feasibility and draw a blueprint for establishing Indian consulting firms with global credibility. 'Das will hold a meeting on 'Can India build big-4 consulting firms'. There will be a presentation by Sanyal. Secretaries of economic affairs Ajay Seth, corporate affairs Deepti Mukherjee, revenue Arvind Shrivastava, and financial services M Nagaraju are also likely to attend the high-level meeting,' one of the sources told Moneycontrol. They are likely to discuss regulatory changes and other policy interventions required for the expansion of domestic accounting firms and to increase their competitiveness. What's the aim behind it? The Indian government is trying to reduce dependence on foreign advisory firms and build globally competitive names in the professional services industry. The affiliates of Big Four, along with Grant Thornton and BDO, have handled assignments of 326 of the 486 Nifty-500 companies as of March 2025, as per a report. The Indian arms of the Big Four posted a combined revenue of Rs 38,800 crore in the financial year 24. This could further exceed Rs 45,000 crore in FY25. 'These firms have become deeply embedded in the functioning of government and PSUs (Public Sector Undertakings). The next logical step is to explore whether India can create its own champions in this space,' the source cited above told Moneycontrol. STORY CONTINUES BELOW THIS AD India's large homegrown consultancy firms would help it avoid overdependence on global players. 'This isn't just about creating competition to the Big Four. It's about recognising consulting as an important industry,' sources said. Speaking to Deccan Herald (DH) recently, Institute of Chartered Accountants of India (ICAI) President CA Charanjot Singh Nanda highlighted the steps taken to develop a big accounting firm to match up with the Big Four. 'To support the growth of Indian CA firms and emphasise the strategic importance of aggregation for enhancing operational efficiency, global competitiveness and professional growth, ICAI established the Committee for Aggregation of CA Firms (CACAF).' He also said that ICAI, a statutory body for regulating the profession of chartered accountancy, has revised guidelines for the merger and demerger of CA firms. 'The revised guidelines aim to encourage firms to explore strategic mergers which can significantly enhance their market presence, operational efficiency, among others. Recently, the Council also approved draft guidelines for Overseas Network, the same will be released shortly for Public Exposure for 21 days. These guidelines aim to establish a structured and regulated pathway for networking and collaboration,' he added. STORY CONTINUES BELOW THIS AD 'This initiative is designed to foster global connectivity, enhance professional opportunities for Indian CA firms, uphold the integrity and quality of services delivered as well as to support the evolving needs of the profession in an interconnected world,' Nanda said. With inputs from agencies
