The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
India's government on Tuesday announced a massive bank recapitalization plan worth tens of billions of dollars — a possible "game changer" for the country's bad loans problem.
The plan could not only provide cheer for investors worried about Indian banks' worsening balance sheets, but it may also have far-reaching implications for the country's economic prospects.
The announcement has been awaited for a long time. India's growing mountain of bad loans has created weak bank balance sheets, crippling the lending ability of financial institutions and hindering the country's growth. That, in turn, makes debtors less able to pay off loans — creating a vicious cycle.
Earlier, analysts had estimated that India's banks need an additional $40 billion to $65 billion to clean up their balance sheets and to meet stricter capital requirements set by an international regulatory framework called Basel lll.
A significant capital injection from the government, however, could be a "game-changer" in breaking the cycle, Goldman Sachs said.
Many have called for New Delhi to provide more of a bailout to India's banking sector, but the government finally appears poised to address the situation.
Over the next two years, New Delhi plans to pump in 2.11 trillion rupees (about $32 billion) into public sector banks in a bid to increase money flow, loosen credit conditions, and boost investment and growth.
The government plans to finance 1.35 trillion rupees ($20.7 billion) by issuing bonds. Another 760 billion rupees ($11.7 billion) is set to come from the budget or the institutions' own fund-raising efforts.
For perspective, the total funds for the initiative equal roughly 1.3 percent of the country's gross domestic product — and the sizable sum could significantly spur economic activity. That is, within one year of implementation, the drag on bank credit growth is expected to decrease by up to 10 percentage points, while GDP growth could rise by up to 5 percentage points, Goldman Sachs said.
The Indian rupee is expected to gain in strength over the next year as a result of recapitalization, analysts at both Goldman Sachs and ING bank said.
Despite the anticipated benefits to investors and to the economy at large, the move does not come without risks.
For one, interest payment on the bond will come at a budgetary cost, which could push up government expenditure and the fiscal deficit, according to Radhika Rao, economist at DBS bank.
Already, India faces a challenging fiscal position, having spent 96 percent of its full-year deficit target in the first five months of its fiscal year. The squeeze limits the government's ability spend and boost growth.
Economic expansion had slowed to a three-year low of 5.7 percent in the April-to-June period, which many said was caused by the introduction of the new Goods and Services Tax and a recent ban on high-value notes.
The country's central bank, the Reserve Bank of India, is also more likely to hike rates sooner than markets currently expect, according to Goldman Sachs. That would prove bearish for short-term interest rates, although the impact on rates in the longer term remains uncertain, the Goldman note added.
Furthermore, the move could "sustain the risk of more public sector bank loans turning sour, swelling the country's [bad loan] ratio," according to a note by ING bank.
—CNBC's Lee Yen Nee contributed to this report.