Banking without NPAs: The conundrum revolving around use and misuse of loans
Singed by the sharp increase in non-performing assets following RBI’s largesse after the 2008-09 global financial crisis, and its failure to nip nascent NPAs in the bud, the RBI-Kamath Committee combine has come up with stringent conditions that few companies will be found eligible to avail the restructuring.
Banks' NPAs in large industry, services fall 31% in over two years to Rs 4.36 lakh crore
"As per Reserve Bank of India (RBI) data on domestic...
Supreme Court grants relief to borrowers, extends loan moratorium period till September 28
The top court extended the interim order in which ...
RBI norms may exclude large number of companies from loan recast scheme
Bankers said corporates that have been lax in repayments before March 2020 will not qualify for restructuring even if they are not non-performing assets (NPAs). Bankers expect only 2-3% of overall bank loans to be eligible for restructuring.
Top 5 private banks stare at NPAs doubling to 5% in FY21
Top five private sector banks may see their slippages double to 5 per cent this fiscal, as per Ind-Ra report.
Bank NPAs may rise 4 percentage points due to Covid pandemic: Reserve Bank of India
In its bi annual financial stability report (FSR) released on Friday RBI assumed a contraction of GDP by 4.4%, gross fiscal deficit of 10.9% and consumer price inflation of 4.1% as the base case scenario.
Banks go for stress test to assess impact of Covid-19 on NPAs
Banks have undertaken stress tests to assess the level of bad loans or non-performing assets (NPAs) caused due to economic slowdown triggered by the outbreak of COVID-19, sources said.
Raghuram Rajan sounds a note of caution, says NPAs may see unprecedented rise in 6 months
"The level of the NPAs is going to be unprecedented in six months from now if we really recognise the true level of NPAs...We are in trouble and sooner we recognise it, better it is because we really need to deal with the problem,” Rajan said during a session at the India Policy Forum 2020 organised by NCAER.
Cautious approach makes RBL Bank confident of maintaining asset quality
The bank has consiously avoided taking bulky loan exposures in the last one year as it brought NPAs under control which had spiralled last fiscal due to loan exposures to Cafe Coffee Day and stressed companies in the media and real estate sectors.
Investment in technology upgradation must for survival of banks: SBI Chairman Rajnish Kumar
Observing that the country has made rapid strides as far as adoption of digital technology is concerned, he mentioned that as a result, India has the maximum number of mobile and internet banking users in the world. In this era of digital banking, he said, "any institution or bank which is not investing enough resources both in terms of manpower, as well as the financial investment in digital and latest technologies, won't be able to survive."
NBFCs, HFCs with more than 6pc net NPAs won't be eligible for special liquidity scheme: RBI
NBFCs, HFCs with more than 6% net NPAs won't be eligible for special liquidity scheme, the RBI has said.
Lakshmi Vilas Bank forms a committee to take merger talks forward with Clix Capital
“We are going ahead with the merger proposal. If it goes through, the bank would be able to get out of the trouble and have a combined net worth of Rs 2800-3000 crore,” said Shakti Sinha, member of the Reserve Bank of India-approved committee of directors (CoD) to run day-to-day affairs of the bank.
Loan recasts to only defer problem, NPAs may zoom up to 14pc due to COVID-19: S&P
The coronavirus pandemic has led to prolonged lockdowns and a chilling of economic activity, forcing the RBI to declare a six-month voluntary moratorium on loan repayments till September.
Borrowers seeking loan moratoriums rose after June; will be judicious on loan recasts: Axis Bank
"The 9.7 (per cent) was the number as of June 30. Obviously over a period of time some more customers do ask for moratorium, so I can definitely say that the number has gone up a little bit rather than coming down, which has happened for everyone," Chaudhry told in an interview
RBI may pick Lakshmi Vilas Bank CEO from names given by bank
Shareholders of Lakshmi Vilas Bank, led by institutions, unexpectedly voted against the appointment of Sundar as chief executive as well as the reappointment of six other directors on Friday. Shareholders alleged that part of the accountability for the bank’s deteriorating performance over the past few years rested with them.