• Ch.Munender Reddy

The Indian central Government announced the so-called Indradhanush Scheme in 2015, to recapitalize and revamp the functioning of public sector banks. Government has estimated that the additional capital needed over the next few years up to FY 2019 would be about Rupees1,80,000 crores, and has proposed a budgetary allocation of Rupees70,000 cores to recapitalize banks. Government expected that, “improved valuations coupled with value unlocking from non-core assets as well as improvements in capital productivity, will enable PSBs to raise the remaining Rupees 1,10,000 crores from the market”. Given the magnitude of the NPA problem, capital infusion seems inadequate. Raising of Rupees1,10,000 crores from capital markets after stock market valuations rise due to improved productivity also seems unrealistic. . It is therefore necessary that securitisation and other allied systems get developed so that Financial Institutions and Banks can offload their initial exposure and make room for financing new projects. With the introduction of financial sector reforms in the early nineties, Financial Institutions and Banks, particularly the Non-Banking Financial Companies (NBFCs), have entered into the retail business in a big way, generating large volumes of homogeneous classes of assets such as auto loans, credit cards receivables, home loans. This has led to attempts being made by a few players to get into the Asset Backed Securities market as well.

Demonization, SEBI, Guidelines, NPA’s, RBI

"A STUDY ON BANKING SECURITIZATION PROBLEMS AND PROSPECTS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.238-244, May-2019, Available :http://www.jetir.org/papers/JETIR1905I37.pdf

"A STUDY ON BANKING SECURITIZATION PROBLEMS AND PROSPECTS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp238-244, May-2019, Available at : http://www.jetir.org/papers/JETIR1905I37.pdf