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 loans form only 8.71% of SBI’s loan book, compared with a stiff 10.4% a year ago. SBI had to write off a quarter of its loans that belonged to the first two lists of accounts referred to insolvency courts.

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MFI portfolio declines, bad assets spike in Sept qtr: Report
1 week ago

MFI portfolio declines, bad assets spike in Sept qtr: Report

Live Mint  

Mumbai, Jan 8 Microlending outstandings in the system reduced 4.3 per cent to ₹4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed …

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 …

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027
2 months ago

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027

Deccan Chronicle  

New Delhi: S&P Global Ratings on Thursday projected the Indian economy to grow between 6.5-7 per cent annually in the three fiscal years till March 2027 as infrastructure spending and private consumption drive growth momentum. “Good economic growth prospects will continue to support banks' asset quality, while healthy corporate balance sheets, tighter underwriting standards and improved risk management practices will …

Why this class of companies is waiting for more corporate failures
4 months, 1 week ago

Why this class of companies is waiting for more corporate failures

Live Mint  

Mumbai: On a humid evening in May, a group of executives from various asset reconstruction companies gathered at the ballroom of hotel President in Cuffe Parade, Mumbai. The third and more recent challenge is the advent of India’s so-called bad bank, the state-owned National Asset Reconstruction Company Ltd. As a rule, the industry thrives when the level of corporate non-performing …

Banks should improve corporate loans, keep deposit base healthy
7 months, 3 weeks 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 …

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 …

At Bandhan Bank, asset quality issues play spoilsport in Q1
1 year, 5 months ago

At Bandhan Bank, asset quality issues play spoilsport in Q1

Live Mint  

Bandhan Bank Ltd disappointed investors with its muted June quarter earnings performance. View Full Image Graphic: Mint The bank’s management expects recoveries to improve from Q2 onwards and that could aid its asset quality outlook. “The management had earlier guided for a reduction in overall stress pool ; however, we opine recoveries by way of improved collections and repa-yments from …

State-Owned Banks Write Off Rs 29,000-Crore Bad Loans In December 2022 Quarter: Report
1 year, 11 months 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 …

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

Banking data bodes well for the economy
2 years ago

Banking data bodes well for the economy

Hindustan Times  

The Reserve Bank of India ’s Report on Trend and Progress of Banking in India 2021-22, released on December 27, underlines the trend of continuous improvement in the health of India’s banking sector. The credit goes to RBI’s nimble-footed approach during the pandemic’s disruption and its sustained efforts to clean bank balance sheets in India. To be sure, the story …

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’
2 years, 5 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, 8 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
2 years, 9 months 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 …

Record profit pushes SBI shares to all-time high
3 years, 5 months ago

Record profit pushes SBI shares to all-time high

Live Mint  

Shares of State Bank of India rose to their all-time high after the nation’s largest lender posted a record quarterly profit, driven by its non-lending business and lower provisions for bad loans. Net income rose 55% to 65 billion rupees in the three months to June, according to a statement Wednesday, beating the average estimate of 54 billion rupees from …

Stress in home loans won’t deter SBI, says Khara
3 years, 5 months ago

Stress in home loans won’t deter SBI, says Khara

Live Mint  

Despite rising delinquencies in home loans, State Bank of India has no plans to rethink its strategy of aggressively growing this portfolio, given the significant potential of home finance, chairman Dinesh Khara said. Even as SBI’s market share in home loans during the quarter rose by 24 basis points sequentially, bad loans rose by 59 bps. We have mastered how …

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

Pandemic-driven Loan Recast to Take Gross Non-performing Assets to 11.5% by March: Report
4 years, 3 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 …

Troubled India shadow lenders show signs of revival on stimulus measures
4 years, 5 months ago

Troubled India shadow lenders show signs of revival on stimulus measures

Live Mint  

The fortunes of India’s shadow lenders are showing signs of turning, suggesting stimulus measures from policy makers will help the troubled sector weather some of the fallout from the pandemic. Premiums that investors seek to buy AAA rated five-year bonds of non-bank lenders over similar-maturity government notes narrowed the most last month since at least 2012, helping a gauge measuring …

SBI Reports 81% Surge in Quarterly Profit, Provisions for Bad Loans Drop
4 years, 5 months ago

SBI Reports 81% Surge in Quarterly Profit, Provisions for Bad Loans Drop

News 18  

Top Indian lender State Bank of India reported an 81% jump in quarterly profit on Friday, helped by a one-time gain from selling a stake in its life insurance unit and a drop in provisions for bad loans. Indian lenders are bracing for a surge in bad loans in a pandemic-ravaged economy, with the central bank's relief measures including deferments …

Yes Bank may sell a part of wholesale loan book to SBI
4 years, 6 months ago

Yes Bank may sell a part of wholesale loan book to SBI

Live Mint  

Troubled private sector lender Yes Bank Ltd may sell a big chunk of its wholesale loan book to its lead investor, State Bank of India to shore up liquidity, three people aware of the talks between the two lenders said. Yes Bank has already raised ₹3,200 crore by downselling its profitable loan facility in ‘Safeway Concessions’, a subsidiary of Australia’s …

He was a debt collector at age 12. Now, at SBI, he is chasing ₹1.5 lakh crore
4 years, 6 months ago

He was a debt collector at age 12. Now, at SBI, he is chasing ₹1.5 lakh crore

Live Mint  

From the age of 12, Challa Sreenivasulu Setty spent his school vacations collecting debts for his father’s grocery store in the small south Indian village of Potlapadu. One-Time Settlements “We prefer one-time settlements at SBI over long litigations,” Setty said of his first principle. “It is very difficult to state what approach we will take” on recovering loans from companies, …

Banking on bailouts: The Hindu Editorial on Yes Bank crisis
4 years, 10 months ago

Banking on bailouts: The Hindu Editorial on Yes Bank crisis

The Hindu  

Just one day after it placed the financially troubled Yes Bank under a moratorium, the Reserve Bank of India announced a draft ‘Scheme of Reconstruction’ that entails the State Bank of India investing capital to acquire a 49% stake in the restructured private lender. The alacrity with which the bailout has been proposed is commendable, given that Yes Bank’s stock …

In 2020, muted credit growth, not bad loans, will be banks’ main concern; a lot will depend on early economic rebound
5 years ago

In 2020, muted credit growth, not bad loans, will be banks’ main concern; a lot will depend on early economic rebound

Firstpost  

In the first seven months of the current financial year, the credit growth to large industries contracted by 3.4 percent as against a growth of 0.2 percent in the year-ago period. The gross NPA ratio of banks, which stood at 9.3 percent of the total loans in March 2019 could rise to close to 10 percent in September 2020, according …

India's financial system stable despite weakening economic growth, says RBI
5 years ago

India's financial system stable despite weakening economic growth, says RBI

India Today  

India's financial system remains stable even after economic growth plummeted to a six-year low, the Reserve Bank of India said on Friday. "Reviving the twin engines of consumption and investment while being vigilant about spillovers from global financial markets remains a critical challenge going forward," the central bank said in its bi-annual Financial Stability Report released on Dec. 27. State-owned …

SBI gets a ₹11,932 crore bad loans jolt from RBI
5 years, 1 month ago

SBI gets a ₹11,932 crore bad loans jolt from RBI

Live Mint  

Mumbai: India’s largest lender, State Bank of India, underreported bad loans and their provisioning by ₹11,932 crore and ₹12,036 crore, respectively, in 2018-19, the Reserve Bank of India has found, the highest such figures reported by any bank so far for the last fiscal. In a stock exchange filing on Tuesday disclosing the central bank’s risk assessment report, SBI said …

RBI finds Yes Bank under-reported bad loans by ₹3,277 crore in FY19
5 years, 1 month ago

RBI finds Yes Bank under-reported bad loans by ₹3,277 crore in FY19

Live Mint  

Mumbai: Private sector lender Yes Bank on Tuesday said the Reserve Bank of India has found that it has under-reported bad loans by ₹3,277 crore in the year ended 31 March. Of this, ₹1,259 crore has already been classified as non-performing as on 30 September and ₹2,018 crore is the amount of incremental bad loans, Yes Bank said. This was …

Investors wary of loans amid SBI’s higher valuation call
5 years, 2 months ago

Investors wary of loans amid SBI’s higher valuation call

Live Mint  

Mumbai: The country’s largest lender, State Bank of India, believes it deserves a higher valuation from investors than what is ascribed to it at present. Chairman Rajnish Kumar has rolled out his plan for the next two years, through which SBI will hack through its pile of bad loans and bring in virtuous business growth. The other risk with SBI, …

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley
5 years, 10 months ago

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley

Firstpost  

Jaitley said the NPA situation of PSU banks has improved in the last 2-3 quarters and the NDA government has ended the practice of “phone banking” New Delhi: The government is following the policy of amalgamating public sector banks to create healthy large banks which are globally competitive, finance minister Arun Jaitley said Thursday. He said the NPA situation of …

SBI to sell NPAs worth more than ₹1,000 crore
5 years, 10 months ago

SBI to sell NPAs worth more than ₹1,000 crore

Live Mint  

Mumbai: State Bank of India has decided to sell 487 bad loans worth over ₹1,000 crore in corporate, small and medium enterprise and housing segments to asset reconstruction companies, other banks and financial institutions, said a bank notice seeking bids. Interestingly, the bank has also put on sale 480 housing and SME loans from its stressed asset resolution branches across …

Opinion | A bad loan farce gets another rerun in India
6 years ago

Opinion | A bad loan farce gets another rerun in India

Live Mint  

A new year, a new central bank governor. The solution back then lay in encouraging lenders to send problem loans to so-called corporate debt restructuring an out-of-of-court mechanism that helped banks recover some money in the absence of a modern bankruptcy law. So RBI governor Raghuram Rajan relented and gave lenders new tools—Strategic Debt Restructuring and Scheme for Sustainable Structuring …

Banks recover ₹40,400 crore from defaulters: RBI report
6 years ago

Banks recover ₹40,400 crore from defaulters: RBI report

Live Mint  

Mumbai: Banks have seen a significant improvement in recovery of stressed assets helped by the Insolvency and Bankruptcy Code and amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, during FY18, according to the RBI data. The various channels through which lenders recovered their bad loans include the Insolvency and Bankruptcy Code, SARFAESI Act, …

No respite for Bank of India, amid RBI vs Govt over PCA
6 years, 2 months ago

No respite for Bank of India, amid RBI vs Govt over PCA

Live Mint  

One of the main issues of contention between the government and the Reserve Bank of India is the prompt corrective action framework for banks. Bank of India is the fifth lender among the 11 under PCA to report September quarter results, and the signs are mixed. The public sector bank reported a quarterly loss of ₹ 1,156.25 crore, massive if …

Bank of India posts ₹1,156 crore loss in Q2 on surging NPAs
6 years, 2 months ago

Bank of India posts ₹1,156 crore loss in Q2 on surging NPAs

Live Mint  

Mumbai: Bank of India on Monday reported losses of ₹ 1,156.25 crore for the September quarter as bad loans continued to mount and provisions soared. Its asset quality deteriorated as gross non-performing assets rose 24.85% to ₹ 61,560.65 crore in September quarter from ₹ 49,306.90 crore in the corresponding quarter of last year. “We expect to recover around ₹ 2,000 …

Opinion | SBI is still too cheerful after eight misfires
6 years, 2 months ago

Opinion | SBI is still too cheerful after eight misfires

Live Mint  

State Bank of India chairman Rajnish Kumar wants to assure investors he’s in complete control of the “demon” of soured loans. The bank’s first quarterly profit in 12 months is no doubt an encouraging sign, though net income of $129 million on a $284 billion loan book is hardly worth celebrating. Further slippages could also be contained, with State Bank …

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 …

SBI chairman Rajnish Kumar sees bad loan provision falling after two quarters
6 years, 3 months ago

SBI chairman Rajnish Kumar sees bad loan provision falling after two quarters

Live Mint  

Nusa Dua, Indonesia: State Bank of India, the country’s largest lender, sees its provision for bad loans remaining high for at least the next two quarters, after which it will start softening as it steps up efforts to improve asset quality, its chairman said on Friday. The state-run lender is India’s banks have been plagued by a surge in non-performing …

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV
6 years, 3 months ago

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV

India TV News  

Union Finance Minister Arun Jaitley on Saturday said that bad debts or Non-performing Assets in the banking system are on the decline as recoveries of unpaid loans have picked up. The finance minister also said that the new insolvency law, indirect tax regime and demonetization will help drive India's growth rate and sustain it at 8 per cent. Jaitley said …

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road
6 years, 3 months ago

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road

Firstpost  

We now have one big problem which the Narendra Modi government is trying to postpone further by merging different public sector banks. As Raghuram Rajan, former governor of the Reserve Bank of India put it in a recent note to the Chairman of the Parliament Estimates Committee, Murli Manohar Joshi: “A larger number of bad loans were originated in the …

SBI to sell 8 bad loans to recover dues worth over ₹3,900 crore
6 years, 3 months ago

SBI to sell 8 bad loans to recover dues worth over ₹3,900 crore

Live Mint  

New Delhi: State Bank of India, the country’s largest lender, will sell eight non-performing assets to recover dues worth over ₹ 3,900 crore and has invited bids from asset reconstruction companies and financial institutions. Of the eight accounts on the block, Kolkata-based Rohit Ferro Tech has the highest loan outstanding against it at ₹ 1,320.37 crore, followed by Indian Steel …

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 …

It’s better safe than sorry for State Bank of India
6 years, 5 months ago

It’s better safe than sorry for State Bank of India

Live Mint  

Mumbai: A bank’s health is a good reflection of the health of its borrowers. What better way is there to judge if corporate India has recovered than through the balance sheet of the country’s largest lender, State Bank of India. SBI had to provide a staggering ₹ 19,228 crore out of which about 77% was towards bad loans and the …

India’s quick fix for banks has a loophole | Opinion
6 years, 6 months ago

India’s quick fix for banks has a loophole | Opinion

Hindustan Times  

Each new day brings a fresh band-aid in India’s efforts to patch up its banks. Each new day brings a fresh band-aid in India’s efforts to patch up its banks Missing from discussions around these quick fixes is a crucial question: How will bond vigilantes react to the sound of cans being kicked down the road? That’s because even before …

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