Kerala’s SoS may not have major impact on asset quality of banks
6 years, 4 months ago

Kerala’s SoS may not have major impact on asset quality of banks

Live Mint  

The tattered balance sheets of Indian banks appear poised to take another blow, after heavy rains unleashed destruction across the state of Kerala. Given the damage to crops, property and other assets that are typically collateral for loans, will banks take another severe hit on their already-battered asset quality? The worst hit would be Federal Bank Ltd, South Indian Bank Ltd and Dhanlaxmi Bank Ltd. Consequently, shares of Federal Bank and South Indian Bank fell 5.6% and 2.6%, respectively, on Monday. For other banks, the hit would be felt on loans to agriculture and small businesses as these dominate the outstanding advances to the state, data from the Reserve Bank of India shows.

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History of this topic

Gross NPA of banks decline to 12-year low of 2.6%, bad loan ratio to worsen in 2026: RBI Report
2 weeks, 2 days 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’ balance sheets stay robust, bad loans decline more, central bank report says
2 weeks, 6 days ago

Indian banks’ balance sheets stay robust, bad loans decline more, central bank report says

Live Mint  

By Siddhi Nayak MUMBAI, Dec 26 - Indian banks' financial position has stayed robust, marked by the sustained expansion in loans and deposits, while their gross bad loan ratio has dropped to multi-year lows, a central bank report showed on Thursday. Net bad loans of banks fell to 0.57% of total loans at September-end, from 0.62% at end-March, driven by …

Getting Indian banks back on the track
1 year, 1 month ago

Getting Indian banks back on the track

Hindustan Times  

After a long slump, private sector investments in India may be on the cusp of a revival, according to some analysts. State Bank of India, would report a steep increase in bad loans every time its chairperson changed. The largest of them, State Bank of India, would report a steep increase in bad loans every time its chairperson changed. During …

Banks’ Q1 to be sober on growth, but troubling on asset quality
3 years, 6 months ago

Banks’ Q1 to be sober on growth, but troubling on asset quality

Live Mint  

Banks may begin FY22 on a sober note with subdued loan growth and wobbly asset quality following the second wave of the pandemic. That said, the fiscal first quarter may perhaps be the ugliest as analysts expect a gradual improvement in both growth and asset quality for the rest of this financial year. Guidance on loan growth and asset quality …

Revival is near, but toxicity worries State Bank of India
5 years, 11 months ago

Revival is near, but toxicity worries State Bank of India

Live Mint  

Is the Indian economy finally free of the toxicity that infected balance sheets of companies? SBI reported an impressive 16% growth in domestic loan offtake, which was surprisingly led by growth in its corporate book. SBI gave 20% more loans to companies than it did a year ago and a lot of it is indeed working capital. Now, gross bad …

Kerala floods will lead to losses, recovery delays for banks
6 years, 4 months ago

Kerala floods will lead to losses, recovery delays for banks

Live Mint  

New Delhi: Financial services major Jefferies on Monday said floods in Kerala will lead to some recovery delays and losses for banks, typically in agriculture loans, micro, small and medium enterprises priority sector loans, home loans and trade activities. “Incessant rains since 8 August have caused Kerala’s worst floods in a century, and at least 186 people have perished, many …

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