Higher MCLR is an indication in the uptick in bank deposit rates in the last couple of months as banking sector liquidity has dried up. MCLR is closely linked to the cost banks pay on their deposits.
Bank of India CEO D Mohapatra, ICICI executive director NS Kannan, Allahabad Bank CEO Usha Ananathasubramanian and IBA CEO VG Kannan were among the bankers present.
Checks were not done by the banks and other lenders, raising doubts on the number of people who may have helped Modi to keep this scam going for years.
A back-of-the-envelope calculation suggests that if another Rs 13,000 crore is added to NPAs, total bad loans will rise to Rs 70,519 crore, up from Rs 57,519 crore reported in the quarter ended December.
Mehta stuck to the number earlier announced and in fact has added the loan outstanding, which means that the exposure is higher than earlier thought, said one analyst.
All rating agencies are likely to release a revised rating by the middle of next week.
Thirty banks, including 19 in the public sector, eight in the private sector, two foreign banks and one development finance institution, were said to be exposed to the counter-party risk because of the fraud.
The closure of these subsidiaries will allow the bank to get back at least $50 million.
RBI move could lead to a jump in provisions, eroding profitability & depleting the already low level of capital. They may be forced to go to the govt for more capital.
The two-day meeting, an annual affair, will be held in Mumbai on February 28 and March 1.
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