For bad loan issue, Raghuram Rajan blames ‘overall economic downturn’
8 years, 10 months ago

For bad loan issue, Raghuram Rajan blames ‘overall economic downturn’

India TV News  

New Delhi: Asked to explain the “real causes” of ballooning bad loans at public sector banks, RBI Governor Raghuram Rajan has put the blame on “overall economic downturn”, among other reasons, in his submission to the key Parliamentary Panel. At the end of December, as many as 701 accounts with bad loans exceeding Rs 100 crore owed public sector banks Rs 1.63 lakh crore, while SBI accounted for the biggest chunk. Noting that Private Sector Banks and Foreign Banks have 2.2 per cent NPAs whereas the Public Sector Banks have 5.98 per cent NPAs, the PAC felt “it is hard to believe that the difference is only due to the PSL”. In his reply, Rajan said, “While some of the reasons for recent spurt in NPAs could be subset of those indicated by Narasimham Committee, the level of stressed assets are seen in the context of overall economic downturn”.

Assets Economic Loan Public Cent Pac Reasons Rajan Npa Bad Loans Npas Sector Banks Raghuram Rajan Stressed Assets Banks Rbi Sector Banks Rbi Overall Economic Downturn  pac  loan  overall  downturn  npas  bad  economic  sector  banks  rbi  cent  raghuram  public  assets  npa  rajan  issue  blames  reasons

History of this topic

Banks wrote off bad loans worth ₹16.35 lakh crore in last 10 years: Centre
Trending News
1 week, 3 days ago

Banks wrote off bad loans worth ₹16.35 lakh crore in last 10 years: Centre

Hindustan Times  

Banks have written off non-performing assets or bad loans worth about ₹16.35 lakh crore in last 10 financial years, Parliament was informed on Monday. Banks continue pursuing their recovery actions initiated against borrowers under the various recovery mechanism available to them, such as filing of a suit in civil courts or in Debts Recovery Tribunals, action under the Securitisation and …

Banks write off bad loans worth ₹16.35 lakh cr in last 10 years
1 week, 3 days ago

Banks write off bad loans worth ₹16.35 lakh cr in last 10 years

Live Mint  

New Delhi, Mar 17 Banks have written off non-performing assets or bad loans worth about ₹16.35 lakh crore in last 10 financial years, Parliament was informed on Monday. Banks continue pursuing their recovery actions initiated against borrowers under the various recovery mechanism available to them, such as filing of a suit in civil courts or in Debts Recovery Tribunals, action …

5 PSU banks may see government stake sale of up to 20%: Report
1 month ago

5 PSU banks may see government stake sale of up to 20%: Report

India Today  

The government is planning to sell up to 20% of its stake in five public sector banks over the next four years, according to a report by Business Standard. The stake sale in public banks is aimed at meeting the Securities and Exchange Board of India’s minimum public shareholding norms, which require listed companies to have at least 25% of …

NPAs at 12-year low, red flags in some areas, says RBI report
2 months, 3 weeks ago

NPAs at 12-year low, red flags in some areas, says RBI report

Hindustan Times  

Indian banks’ bad loans fell to their lowest level in 12 years, although early warning indicators suggest potential stress in some sectors, the Reserve Bank of India’s financial stability report stated on Monday. NPAs at 12-year low, red flags in some areas, says RBI report The gross non-performing assets ratio of scheduled commercial banks declined to 2.6% in September 2024, …

Gross NPA of banks decline to 12-year low of 2.6%, bad loan ratio to worsen in 2026: RBI Report
2 months, 3 weeks ago

Gross NPA of banks decline to 12-year low of 2.6%, bad loan ratio to worsen in 2026: RBI Report

Live Mint  

The Reserve Bank of India said that banks' asset quality improved in 2024, with the gross non-performing assets or bad loans ratio falling to a 12-year low of 2.6 per cent in September 2024, driven by falling slippages and steady credit demand. "Buoyed by falling slippages, higher write-offs and steady credit demand, the GNPA ratio of 37 scheduled commercial banks …

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report
3 months ago

Indian banks’ profitability improves for six straight years, NPAs decline to 13-year low: RBI report

Live Mint  

The profitability of banks improved for the sixth consecutive year in 2023-24 and their gross bad debts or non-performing assets declined to a 13-year low of 2.7 per cent. "Banks’ profitability rose for the sixth consecutive year in 2023-24 and continued to rise in H1:2024-25 with the return on assets at 1.4 per cent and return on equity at 14.6 …

Gross bad assets of government banks fell from 14.58% in Mar 2018 to 3.12% in Sep 2024: Finance ministry
3 months, 2 weeks ago

Gross bad assets of government banks fell from 14.58% in Mar 2018 to 3.12% in Sep 2024: Finance ministry

Live Mint  

The government said on Thursday that policy reforms in the financial sector have restored the health of the banking sector, with the gross non-performing asset ratio of public sector banks falling to 3.12% in September 2024 from a peak of 14.58% in March 2018 and 4.97% in March 2015. The marked improvement also saw PSBs record their highest-ever aggregate net …

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports
3 months, 2 weeks ago

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports

Deccan Chronicle  

New Delhi: The gross non-performing assets of public sector banks stood at Rs 3.16 lakh crore as of September 30, which is 3.09 per cent of the outstanding loans, while gross NPAs as percentage of outstanding loan is 1.86 per cent in private sector banks, the government said on Tuesday. Informing to the Parliament, minister of state for finance Pankaj …

SBI set to borrow $1.25 billion, India’s largest dollar-denominated bank loan in 2024; details here
4 months, 1 week ago

SBI set to borrow $1.25 billion, India’s largest dollar-denominated bank loan in 2024; details here

Live Mint  

The State Bank of India, India's largest public sector bank, is planning to raise up to $1.25 billion, marking the biggest dollar-denominated loan in the country's financial sector. Dollar loan volume declines The report said that despite these loans, India's dollar loan volume has declined 27 per cent to $14.2 billion this year due to the absence of large company …

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman
6 months ago

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman

The Hindu  

Setty has said the bank has already got ₹4 lakh crore strong credit pipeline from India Inc and expressed hope that capital expenditure by the private sector is expected to pick up in the second half of the fiscal year. As far as public spending is concerned, Finance Minister Nirmala Sitharaman in the Budget proposed to raise the capital expenditure …

Will Conflict of Interest Allegations Against SEBI Chairperson Madhabi Buch Impact Indian Public Sector Banks?
7 months, 1 week ago

Will Conflict of Interest Allegations Against SEBI Chairperson Madhabi Buch Impact Indian Public Sector Banks?

The Hindu  

Published : Aug 15, 2024 11:57 IST - 5 MINS READ The integrity of India’s financial markets has been called into question following allegations of conflict of interest against Madhabi Buch, the current chairperson of the Securities and Exchange Board of India. Notably, the regulatory oversight of SEBI has a deep influence on public sector banks in India, especially those …

Banks should improve corporate loans, keep deposit base healthy
10 months ago

Banks should improve corporate loans, keep deposit base healthy

New Indian Express  

For the first time ever, the cumulative net profits of Indian banks surpassed Rs 3 lakh crore in 2023-24, up from Rs 2.3 lakh crore in 2022-23. While the 26 private lenders’ net profits shot up 42 percent to Rs 1.78 lakh crore, the 12 public sector banks reported net profits of Rs 1.41 lakh crore in 2023-24, a 34 …

5 PSU Banks To Lower Govt Shareholding To Comply With MPS Norms: DFS Secretary
1 year ago

5 PSU Banks To Lower Govt Shareholding To Comply With MPS Norms: DFS Secretary

ABP News  

Five public sector lenders, including Bank of Maharashtra, IOB and UCO Bank are planning to reduce government stake to less than 75 per cent to comply with Sebi's minimum public shareholding norms, Financial Services Secretary Vivek Joshi has said. It is followed by Chennai-based Indian Overseas Bank at 96.38 per cent, UCO Bank 95.39 per cent, Central Bank of India …

Banks write off ₹10.57 lakh crore in 5 years, make NPA recovery worth ₹7.17 lakh cr: FinMin
1 year, 3 months ago

Banks write off ₹10.57 lakh crore in 5 years, make NPA recovery worth ₹7.17 lakh cr: FinMin

The Hindu  

Banks have written off ₹10.57 lakh crore during the last five financial years, of which ₹5.52 lakh crore was in respect of loans pertaining to large industries, the government informed the Parliament on Tuesday. "As per RBI data, scheduled commercial banks have written off an aggregate loan amount of ₹10.57 lakh crore during the last five financial years," Minister of …

Former A.P. Finance Minister Yanamala Ramakrishnudu seeks clarification on CAG’s findings on State’s fiscal position
1 year, 7 months ago

Former A.P. Finance Minister Yanamala Ramakrishnudu seeks clarification on CAG’s findings on State’s fiscal position

The Hindu  

Former Finance Minister and TDP Politburo member Yanamala Ramakrishnudu wrote a letter to Special Chief Secretary S.S. Rawat on August 23, seeking a clarification whether the recent findings of the Comptroller & Auditor General of India on the State’s financial position in FY 2021-22 reflect the true picture. He stated that two inevitable conclusions could be drawn from the CAG’s …

Bank deposits increase by Rs 24,102cr in quarter
1 year, 7 months ago

Bank deposits increase by Rs 24,102cr in quarter

Deccan Chronicle  

HYDERABAD: Total deposits in banks increased by Rs24,102 crore in the quarter, taking the total deposits to Rs7,07,108 crore, SBI’s chief general manager stated in the State Level Bankers’ Committee meeting on Monday for a review of the quarter ended June 2023. During the first quarter of the current financial year, banks have disbursed short-term production loans amounting to Rs11,929 …

PM Modi's Garib Kalyan: Why Rahul Gandhi is Wrong in Saying 'Poverty is a State of Mind' - News18
1 year, 7 months ago

PM Modi's Garib Kalyan: Why Rahul Gandhi is Wrong in Saying 'Poverty is a State of Mind' - News18

News 18  

Speaking at a function in Allahabad in 2013, Rahul Gandhi stirred the hornet’s nest by dismissing poverty as just “a state of mind.” Measuring his words carefully has never been a strong suit of the Gandhi scion. Coming back to the issue of poverty, back in 2013, hailing the role of self-help groups, the then Congress vice president, Rahul Gandhi …

Banks recovered more than Rs 10 lakh crores from NPAs in the last nine years: Finance Ministry tells Lok Sabha
1 year, 8 months ago

Banks recovered more than Rs 10 lakh crores from NPAs in the last nine years: Finance Ministry tells Lok Sabha

Op India  

In a major success for the Narendra Modi government, during the last nine fiscal years, scheduled commercial banks have recovered approximately Rs 10 lakh crore, as per the government’s information to the Lok Sabha. In a written response to a question in the Lok Sabha on Monday, Minister of State for Finance Bhagwat Kisanrao Karad stated that according to the …

Canara Bank was top lender to public sector cos in FY23
1 year, 8 months ago

Canara Bank was top lender to public sector cos in FY23

Live Mint  

Public Sector Banks lent ₹4.12 trillion to state-backed corporations and public sector undertakings during 2022-23, down from ₹4.93 trillion during the previous year, finance minister Nirmala Sitharaman informed Parliament in a written response on Monday. Responding to questions by member of parliament, Velusamy P, Sitharaman informed the Lok Sabha that Canara Bank led the lending during 2022-23 to government backed …

Cleaning up of NPA mess will propel the economy
1 year, 8 months ago

Cleaning up of NPA mess will propel the economy

Hindustan Times  

To understand the complexities of India’s banking sector, one needs to grapple with a term that tends to recur with unsettling regularity – non-performing assets. The gross NPA ratio of scheduled commercial banks stood at 4.9%, and ₹66.6 lakh crore in March 2014 were bad loans. The National Democratic Alliance government took several steps to address the NPA problem, including …

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman
1 year, 8 months ago

Net profit of PSBs almost tripled to ₹1.04 lakh in FY2022-23: FM Sitharaman

Live Mint  

Finance Minister Nirmala Sitharaman on Saturday appreciates the state-run banks for becoming profiteering. According to the union Finance Minister, the net profit of public sector banks has almost tripled to ₹1.04 lakh crore in fiscal 2022-23. "The Non-Performing Assets of the Indian banks is estimated to reduce further to a decadal low of 3.8% by end of FY 2023-24," Sitharaman …

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'
1 year, 8 months ago

Nirmala Sitharaman praises PSBs, says 'profit tripled to Rs 1.04 lakh in nine years'

India TV News  

Finance Minister Nirmala Sitharaman stated on Saturday that the profit of public sector banks has tripled to Rs 1.04 lakh crore over the past nine years as a result of government initiatives. Public sector banks net profit nearly tripled from Rs 36,270 crore in FY2014 to Rs 1.04 lakh crore in FY23. They should follow best corporate governance practices, adhere …

Inside Bank of Baroda’s silent transformation
1 year, 11 months ago

Inside Bank of Baroda’s silent transformation

Live Mint  

In the last week of September 2021, Mukund Rajan, the former chief ethics officer at the Tata Group, showed a bunch of Bank of Baroda executives a video clip from the 26/11 terror attacks in Mumbai. Led by Sanjiv Chadha, the bank’s current managing director and chief executive officer, the lender is on a mission to reinvent itself by adding …

State-Owned Banks Write Off Rs 29,000-Crore Bad Loans In December 2022 Quarter: Report
2 years, 1 month ago

State-Owned Banks Write Off Rs 29,000-Crore Bad Loans In December 2022 Quarter: Report

News 18  

State-owned banks wrote off bad loans worth Rs 29,000 crore in the December 2022 quarter, higher as compared with Rs 23,000 crore in the corresponding quarter last year, as part of a clean-up exercise, according to a CARE Ratings report. The write-offs by public sector banks in April-December 2022 were Rs 81,000 crore, which were lower than the Rs 90,000 …

ECONOMIC PERSPECTIVES | Is a reversal of bank nationalisation on the cards?
2 years, 2 months ago

ECONOMIC PERSPECTIVES | Is a reversal of bank nationalisation on the cards?

The Hindu  

Published : Jan 26, 2023 10:25 IST The semi-annual Financial Stability Report from the Reserve Bank of India signals that the country’s banking system, especially the public banking system, has put behind it the stress from disturbingly high non-performing or bad loans on its books. The asset quality review resulted in an increase in the volume of recorded gross NPAs …

Has India tided over the problem of bad loans?
2 years, 2 months ago

Has India tided over the problem of bad loans?

The Hindu  

The story so far: In December 2022, Finance Minister Nirmala Sitharaman told Parliament that banks had written off bad loans worth ₹10,09,511 crore during the last five financial years. In 2009, the RBI brought out norms that set out categories of NPAs and what banks must do as these bad loans aged. Bad loans are a problem, for, with time, …

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report
2 years, 2 months ago

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report

ABP News  

Gross Non-Performing Assets of Indian banks declined to 5 per cent in september but the present macroeconomic environment can impact lenders' health, said a new Reserve Bank of India report. The report said, “from its peak in 2017-18, the GNPA ratio of SCBs has been declining sequentially to reach 5 per cent at end-September 2022.” It said that the number …

Banks write off loans worth Rs 11.17 lakh crore in last 6 years
2 years, 3 months ago

Banks write off loans worth Rs 11.17 lakh crore in last 6 years

Deccan Chronicle  

NEW DELHI: Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday. "As per RBI data, public sector banks and scheduled commercial banks wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," …

PM trusted the poor: BJP leader Amit Malviya slams former RBI chief Raghuram Rajan over Mudra Yojana
2 years, 3 months ago

PM trusted the poor: BJP leader Amit Malviya slams former RBI chief Raghuram Rajan over Mudra Yojana

Firstpost  

Calling out former Reserve Bank of India governor Raghuram Rajan in a tweet, BJP leader Amit Malviya claimed that NPAs of the Pradhan Mantri Mudra Yojana - also known as Mudra loan scheme - are lower than the banking sector average 7 years after it was launched by Prime Minister Narendra Modi Amit Malviya on Mudra Loan: BJP leader Amit …

RBI Bulletin: Big bang Approach To PSB Privatisation May Do More Harm Than Good
2 years, 7 months ago

RBI Bulletin: Big bang Approach To PSB Privatisation May Do More Harm Than Good

ABP News  

A big bang approach to privatisation of state-run banks may do more harm than good, according to the latest Reserve Bank of India bulletin released on Thursday. The RBI’s paper showed some of the major reasons that public sector banks can serve the country better than private banks include better financial inclusion, better credit system, and better efficiency of the …

SBI Q1 Results: State Bank of India Net Profit Down by 6% YoY at Rs 6,068 Crore
2 years, 7 months ago

SBI Q1 Results: State Bank of India Net Profit Down by 6% YoY at Rs 6,068 Crore

News 18  

SBI Q1 FY23 Results: India’s largest public sector lender State Bank of India on Saturday reported a drop in net profit by 6.07 per cent at Rs 6,068 crore in Q1 FY23 as against Rs 6,504 crore in Q1 FY22. The Net interest Income, or NII for the quarter under review stood at Rs 31,196, an increase of 12.87 per …

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’
2 years, 8 months ago

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’

The Hindu  

Concrete steps taken by the government and RBI helped banks recover bad loans worth more than ₹8.6 lakh crore in the last eight financial years, the government informed Parliament on Monday. Several factors - including prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by banks, aggressive lending during upturns, improper risk pricing and poor credit underwriting …

SBI Q4 results: Profit jumps 41%, bad loans decline
2 years, 10 months ago

SBI Q4 results: Profit jumps 41%, bad loans decline

India Today  

State Bank of India on Friday reported a 41 per cent surge in standalone net profit at Rs 9,114 crore for the fourth quarter ended March 2022, helped by decline in bad loans. On a consolidated basis, the bank reported a 56 per cent increase in net profit at Rs 9,549 crore, compared to Rs 6,126 crore in the fourth …

Bad loans: Why, this time, it’s different
3 years ago

Bad loans: Why, this time, it’s different

Hindustan Times  

Non-performing assets or bad loans of banks have come down to their lowest levels, Reserve Bank of India governor Shaktikanta Das said at a Confederation of Indian Industry event on March 21. When seen in the context of gross NPA share falling to 6.9% of all loans, according to RBI’s Financial Stability Report released in December 2021 — the latest …

Banks lost ₹2.85 lakh crore due to loan default of 13 firms; UFBU calls for bank strike on December 16, 17
3 years, 3 months ago

Banks lost ₹2.85 lakh crore due to loan default of 13 firms; UFBU calls for bank strike on December 16, 17

The Hindu  

Public sector banks have lost nearly ₹2.85 lakh crore on account of loan dues of 13 corporates even as the banks are used to bail out ailing financial institutions such as Yes Bank and IL&FS, United Forum of Bank Unions alleged on Monday. In press release, UFBU’s Convener B. Rambabu said the organisation calls for a two-day all India bank …

Banks NPAs decline to Rs 8.34 lakh cr at March-end 2021, junior finance minister informs Lok Sabha
3 years, 8 months ago

Banks NPAs decline to Rs 8.34 lakh cr at March-end 2021, junior finance minister informs Lok Sabha

Firstpost  

Scheduled commercial banks were carrying NPAs worth Rs 8.96 lakh crore on their balance sheet at the end of March 2020 New Delhi: Non-performing assets or bad loans of banks have declined by Rs 61,180 crore to Rs 8.34 lakh crore at the end of March 31, 2021, as a result of various steps taken by the government, Minister of …

Rs.1.53 lakh crore bad loan write-off gives a facelift to banks’ NPA profile
3 years, 9 months ago

Rs.1.53 lakh crore bad loan write-off gives a facelift to banks’ NPA profile

New Indian Express  

Explaining the trend of bad loans, Care Ratings chief economist Madan Sabnavis said that banks' gross NPAs increased sharply by 43.7 per cent from Rs. But after FY18, the NPAs saw moderation and reached Rs 8.9 lakh crore by end of March 2020 driven by large share of write-offs and lower slippages. Over the last couple of years, public sector …

Parliament proceedings | Banks' NPAs decline to ₹8.08 lakh crore in Sept 2020: Govt
4 years, 1 month ago

Parliament proceedings | Banks' NPAs decline to ₹8.08 lakh crore in Sept 2020: Govt

The Hindu  

Non-performing assets or bad loans of the banking sector came down from a high of ₹10.36 lakh crore at the end of March 2018 to ₹8.08 lakh crore at the end of September 2020 due to various initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday. As a result of the Asset …

What is Bad Bank? How Modi govt plans to address stressed assets of public sector banks
4 years, 1 month ago

What is Bad Bank? How Modi govt plans to address stressed assets of public sector banks

India TV News  

What is Bad Bank? How Modi govt plans to address stressed assets of public sector banks Bad Bank will seek to provide financial stability in the banking sector. In her budget speech, Sitharaman said that an Asset Reconstruction Company Limited and Asset Management Company will be set up that will manage the bad debt of public sector banks like State …

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman
4 years, 1 month ago

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman

News 18  

Finance minister Nirmala Sitharaman on Monday told the News18 Network that the government had engaged with the Reserve Bank of India in a “big way” as she outlined a timeline for meeting divestment targets set in her Budget 2021 speech. Speaking to News18 Network’s Editor-in-Chief Rahul Joshi, the finance minister said that the country needs efficient banks for the economy …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
4 years, 1 month ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget due to be presented on Monday, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross …

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run
4 years, 1 month ago

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run

News 18  

The Economic Survey 2021, released on January 29 ahead of the Union Budget 2021, has called for adequate capitalisation of public sector banks flagging fears of lenders resorting to risk-shifting, which will, in turn, impact the economy which has just begun its upward rise months after the crippling impact of the Covid-19 pandemic. Public sector banks account for 60 per …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
4 years, 1 month ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget less than a week away, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross non-performing …

RBI Financial Stability Report: Banks gross NPA may rise to 13.5% by September 2021
4 years, 2 months ago

RBI Financial Stability Report: Banks gross NPA may rise to 13.5% by September 2021

The Hindu  

Banks' gross non-performing assets may rise to 13.5% by September 2021, from 7.5% in September 2020 under the baseline scenario, according to Financial Stability Report released by the Reserve Bank of India. "The stress tests indicate that the GNPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021 under the baseline …

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?
4 years, 2 months ago

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?

The Hindu  

The ratio of Gross Non-Performing Assets in Indian banks decreased in FY20 and FY21 despite the impact of COVID-19 and the economic downturn that preceded it. This was mostly due to three factors: 1) Banks wroteoff relatively more NPAs in FY20 to clean their balance sheets; 2) Some large NPA accounts got resolved through debt-recovery channels; and 3) It is …

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?
4 years, 2 months ago

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?

The Hindu  

The story so far: After losses in two consecutive years, India’s scheduled commercial banks turned profitable in 2019-20. The Reserve Bank of India reckons that the first half of 2020-21 saw even greater improvements in banks’ vital statistics, with non-performing assets falling to 7.5% of outstanding loans by September 2020. What former Chief Economic Adviser Arvind Subramanian had called India’s …

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking
4 years, 4 months ago

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking

The Quint  

He also added that “it is no secret which politically connected business houses will get the first licences and increase their monopolistic power” if the proposal is administered. Speaking for the importance of neutrality of banks, which is maintained even in developed economies, Chidambaram said “It is shocking that such an idea should have been presented to the people as …

Pandemic-driven Loan Recast to Take Gross Non-performing Assets to 11.5% by March: Report
4 years, 5 months ago

Pandemic-driven Loan Recast to Take Gross Non-performing Assets to 11.5% by March: Report

News 18  

The pandemic-induced one-time loan restructuring will spike the system-wide gross non-performing assets to 11-11.5 per cent by March, says a report. The system-wide GNPAs stood at 8.2 per cent in Q1 of FY21, down from 9.5 per cent in Q1 FY20, thanks to the recoveries and higher write-offs during the period. Of the total dud loans, state-run banks accounted for …

Finance Ministry May Provide Capital Support Worth Rs 20,000 crore to Public Sector Banks in 3rd Quarter
4 years, 6 months ago

Finance Ministry May Provide Capital Support Worth Rs 20,000 crore to Public Sector Banks in 3rd Quarter

News 18  

The Finance Ministry is likely to provide capital support from the Rs 20,000 crore fund approved by Parliament in recently concluded session to some Public Sector Banks in the third quarter itself. In the last financial year, Punjab National Bank got Rs 16,091 crore, Union Bank of India received Rs 11,768 crore while Canara Bank and Indian Bank got Rs …

The battle to save banks
4 years, 6 months ago

The battle to save banks

India Today  

The battle for saving banks has been a long drawn one. Speaking at the seventh SBI Banking and Economics Conclave in July, RBI governor Shaktikanta Das said: “The economic impact of the pandemic due to the lockdown and the anticipated post-lockdown compression in economic growth may result in higher NPAs and capital erosion of banks. A recapitalisation plan for PSBs …

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