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 of them killed by landslides.” Agriculture tops the list of sectors with the highest loan exposure at 24%, followed by MSME and housing loans, according to Jefferies. “Reserve Bank of India regulations allow restructuring of loans in case of natural calamities but banks will need to make higher provisions with respect to restructured loans; expect RBI’s relaxation to defer non-performing loan spike in the near term,” Jefferies said in the note. For south India Bank, Kerala advances as percentage of total advances is around 41%, while for Federal Bank it is around 36%.

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History of this topic

CM urges banks to support ‘investment-friendly Kerala’ drive
1 year, 9 months ago

CM urges banks to support ‘investment-friendly Kerala’ drive

The Hindu  

Chief Minister Pinarayi Vijayan on Wednesday sought the support of commercial banks for the State government’s drive to attract investments to Kerala. Inaugurating the first meeting of the State-level Bankers’ Committee in the 2023-24 fiscal, Mr. Vijayan said Kerala has a favourable environment for investments today. Commercial banks also plays a major role, as do cooperative banks, in sustaining the …

Top news of the day: Public sector banks to lend up to ₹5 lakh for COVID-19 treatment; Monsoon arrival in Kerala delayed to June 3, and more
3 years, 7 months ago

Top news of the day: Public sector banks to lend up to ₹5 lakh for COVID-19 treatment; Monsoon arrival in Kerala delayed to June 3, and more

The Hindu  

Individuals including salaried, non-salaried and pensioners can avail unsecured personal loans from ₹ 25,000 to ₹ 5 lakh to meet COVID-19 treatment. Addressing party workers virtually on the seventh anniversary of the Narendra Modi dispensation at the Centre, the BJP chief said all party MPs, ministers and MLAs will serve people in at least two villages following COVID-19 protocols and …

In relief for farmers, Kerala to waive farm loans up to ₹2 lakh
5 years, 6 months ago

In relief for farmers, Kerala to waive farm loans up to ₹2 lakh

Live Mint  

Bengaluru: The Kerala government on Wednesday approved a decision to increase the ceiling of farm loan debt eligible for waivers from ₹1 lakh to ₹2 lakh, in continuation of states offering budgetary support to farmers in distress, and culminating a long-pending demand from the public and the Opposition after the 2018 floods resulted in wide-scale damage on crops. The commission …

The need for a boost to MSME sector
6 years, 2 months ago

The need for a boost to MSME sector

Live Mint  

Prime Minister Narendra Modi’s Diwali package for micro, small and medium enterprises may be late in the day, but it’s nevertheless a boon, particularly the interest subvention and the measures to see that bills are paid on time. According to the MSME Pulse report, for public sector banks, the level of non-performing assets among MSMEs went up from 13% in …

Kerala, After The Flood: Centre to review relief measures undertaken by banks, insurers in state
6 years, 4 months ago

Kerala, After The Flood: Centre to review relief measures undertaken by banks, insurers in state

Firstpost  

The high-level delegation to Kerala will be led by Minister of State for Finance Pon Radhakrishnan, an official statement said New Delhi: The central government will hold a meeting with heads of banks and insurance firms on Wednesday to review relief and rehabilitation measures undertaken by them in the flood-hit Kerala. Chairmen and Managing Directors from public sector banks and …

From crowdsourcing aid to volunteerism, Kerala finds ways to rebuild itself
6 years, 4 months ago

From crowdsourcing aid to volunteerism, Kerala finds ways to rebuild itself

Live Mint  

Ernakulam: From schemes to compensate victims to efforts to raise money for the cash-strapped treasury, here’s a look at how Kerala is responding to the post-flood situation. Chief minister Pinarayi Vijayan on Saturday announced ₹ 10,000 to the nearly 400,000 flood displaced who are now returning from relief camps to their homes, as a quick aid. It involves clearing away …

Kerala, After The Flood: Pinarayi Vijayan says Centre should treat state on different yardstick for extending aid
6 years, 4 months ago

Kerala, After The Flood: Pinarayi Vijayan says Centre should treat state on different yardstick for extending aid

Firstpost  

Giving a detailed account of the havoc caused by the devastating floods and landslides since early August, Vijayan said the preliminary assessment of losses was around Rs 20,000 crore which was equal to the state’s annual plan size for 2018-19. Giving a detailed account of the havoc caused by the devastating floods and landslides since early August, he said the …

Opinion | The challenge of rebuilding Kerala
6 years, 4 months ago

Opinion | The challenge of rebuilding Kerala

Live Mint  

As the flood waters recede gradually in Kerala and the Kodagu district of Karnataka, the focus will begin to shift from relief operations to rebuilding. Such fiscal laws across the world have inbuilt flexibility that allow the borrowing limits to be crossed in the case of special circumstances such as a sharp recession or wars or natural calamities. One possible …

400 dead. Crores lost. The cost of the Kerala floods
6 years, 4 months ago

400 dead. Crores lost. The cost of the Kerala floods

Live Mint  

New Delhi: Battered by torrential rains, Kerala is witnessing the worst floods in a century. The second spell of monsoon fury since 8 August worsened the situation, as heavy rains for days compelled the administration to open the shutters of the dams, which led to flooding, leaving low-lying areas submerged. The India Meteorological Department said Idukki and Palakkad districts have …

How the Kerala economy fared before the floods
6 years, 4 months ago

How the Kerala economy fared before the floods

Live Mint  

As the torrential rains abate in Kerala, the focus is slowly turning towards how the flood-hit state will rebuild its economy. Between 2011-12 and 2016-17, the Kerala economy grew at a much slower rate than India’s GDP growth rate. In absolute terms, Kerala’s gross domestic product stands at ₹ 6.17 trillion..but per capita income has always been higher Ranked 12th …

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 …

Kerala floods: Real test begins once waters recede as state would have to battle ravaged economy, threat of epidemics
6 years, 4 months ago

Kerala floods: Real test begins once waters recede as state would have to battle ravaged economy, threat of epidemics

Firstpost  

Resources that the tiny state of Kerala can mobilise are very limited. Following Home Minister Rajnath Singh and a central team’s visit to the flood-ravaged state, an interim relief of Rs 100 crore was promised as against Rs 1,220 crore demanded by the state. A statement issued by the Union home ministry in response to Kerala government’s demand for assistance …

Kerala rains: SBI donates Rs 2 crore for flood relief, waives fees for new ATM cards, passbooks
6 years, 4 months ago

Kerala rains: SBI donates Rs 2 crore for flood relief, waives fees for new ATM cards, passbooks

Firstpost  

State Bank of India has donated Rs 2 crore for the people affected by floods in Kerala and has waived off the fees for application of passbooks and ATM cards Mumbai: The State Bank of India has donated Rs 2 crore for the Kerala flood victims and initiated several other ground-level measures in the deluged state, an official said on …

Kerala suffers 80 percent tourism cancellations, government says overall loss due to floods is Rs 8,316 cr
6 years, 5 months ago

Kerala suffers 80 percent tourism cancellations, government says overall loss due to floods is Rs 8,316 cr

Firstpost  

Floods due to the unprecedented monsoon fury in Kerala have wrecked the tourism industry and seriously impacted the plantation sector, which are among the major revenue sources for the state. Thiruvananthapuram: Floods due to the unprecedented monsoon fury in Kerala have wrecked the tourism industry and seriously impacted the plantation sector, which are among the major revenue sources for the …

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