The bank is offering customised loans in Chhattisgarh, Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh, Maharashtra, Odisha and Rajasthan, which saw a growth in demand last year.
Das also added that just like non-bank lenders the RBI was internally working on refining and strengthening guidelines governing asset reconstruction companies.
Banks have been asked to submit details of all non-performing loans in or outside consortium worth ₹500 crore and above. Lenders have been asked not to submit details of those accounts which are nearing resolution under the bankruptcy courts or are in the liquidation process.
Three key metrics of successful privatisation are competitive industry, good governance and sufficient capital to ensure solvency of, and public confidence in, a privatised bank. As one PSB gets privatised, the industry itself becomes more competitive because all PSBs currently have a common majority owner, GoI. RBI has the authority to regulate and monitor the amount of equity capital in banks.
The scheduled commercial bank, also called scheduled bank, status allows Fino to enhance its banking position in the treasury and participation in liquidity adjustment facility (LAF) window as per the RBI. It also helps the bank strengthen its business proposition on liabilities generation, Fino said in a release.
Bankers say that the Supreme Court moratorium over classifying loans as non performing assets (NPAs) has so far kept defaults under wraps, even as recovery efforts are ongoing. But they fear that as much as 25% loans under the scheme could turn bad.
"While the Indian economy is on a mend, the permanent GDP loss stemming from the brunt of the coronavirus is huge at 10 per cent. We estimate the banking system's weak loans are at 12 per cent of gross loans," S&P said. An improvement in India's macroeconomic conditions is likely to alleviate stress for the country's banking sector, said S&P.
While continuing to bank on gold loans as primary growth driver, the bank is set to target opportunities in the SME, two wheeler and secured loan segments.
Paytm Payments Bank MD and CEO Satish Gupta said in a statement, "It has been our endeavour to empower our users with seamless and hassle-free travel on road. In this quest, we support our users in every possible way, including fast redressal of any grievance they face with toll plazas."
The profit growth came despite an increase in provision for credit losses in the year dominated by the pandemic, the bank said in a statement, pointing out that money set aside for losses for wholesale advances almost doubled to USD 94 million, while the same for retail more than doubled to USD 54 million.
Its Managing Director and Chief Executive Officer Shyam Srinivasan said the increase in virus infections in states like Maharashtra needs to be watched, but exuded confidence that it will not affect the overall economic activity, terming it a "minor blip".
The MPC, at its February 3-5 meeting, voted unanimously to keep the repo rate--at which the RBI lends to banks--at 4%, and maintain the accommodative monetary policy stance to help revive the economy in a durable manner.
The tie up is expected to reduce SBI customers’ transaction costs and time taken for payments, sources said. Time taken to resolve cross-border payments-related inquiries can be reduced to a few hours from up to a fortnight, they said. This will help cross-border payments reach beneficiaries faster and using limited steps.
“It’s quite unfortunate that the regulator has been dragging its heels on Iqbal’s appointment since the last 10 months, in fact several shareholders have even shot off letters of complaint to the RBI and the bank board about the CEO’s appointment, but there hasn’t been any response,” an official in the know said.
The ratings agency forecasts total stressed loans from retail to rise to 4.7% in March 2022 from 1.60% in March 2021 led by slippages in unsecured loans especially from private sector banks.
About a dozen lenders, including some of the large state-owned entities, such as Rural Electrification Corporation and Power Finance Corporation, would be approached for equity participation in the bad bank — being positioned as a national ARC.
