Banks' gross non-performing assets (NPAs) and net NPAs are expected to rise to 10.1-10.6 per cent and 3.1-3.2 per cent, respectively by March 2021, Icra said on Monday. The agency also expects net NPA to decline to 2.4-2.6 per cent by March 2022. "As moratorium on loan repayments is over and though we await the Honourable Supreme Court directive on asset classification, the GNPAs and NNPAs for banks are likely to rise in near term to 10.1-10.6 per cent and 3.1-3.2 per cent, respectively by March 2021 from 7.9 per cent and 2.2 per cent, respectively as of September 2020," the rating agency said in a report.
New norms are in place to strengthen regulations for this set of lenders which has been playing a critical role in Asia's third largest economy, notes Tamal Bandyopadhyay.
The RBI has been critical of banks for using restructuring schemes to hide the stress.
Cases across the country against defaulters who owe over Rs 1 crore each, reveal CIBIL data.
The Reserve Bank on Thursday asked banks to improve their ability to manage stressed assets, but said there was nothing alarming about an unexpected rise in the non-performing assets (NPA) levels this fiscal.
The net non-performing assets on December 31, 2016 were Rs 20,155 crore compared to Rs 16,483 crore at September 30, 2016
Speaking at the Delhi Economic Conclave in New Delhi, Reserve Bank of India Governor Raghuram Rajan said the central bank will come out with a discussion paper next week with regard to distressed borrowers and rising non-performing assets.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.
Rating agencies on Wednesday warned against more exposure to debt-ridden Kingfisher Airlines, saying more debt may hit banks' credit profiles and add to the burden of provisions.
It is alleged that during the tenure of Chanda Kochhar, six loans worth Rs 1,875 crore were cleared for the Videocon Group and its associated companies, in which in two cases she herself was on the sanctioning committees.
The current wage revision for PSBs, as well as some private lenders, is due from November 2017 for five years - up to October 2022.
The Finance Ministry on Friday cautioned banks to be on guard for subversion of lending processes by some "undesirable parties", as in the case of the recent bribes-for-loans scandal, in the context of the "burgeoning" non-performing assets of some lenders.
'While bank non-performing assets will rise, there is no systemic risk.'
At Rs 547.64 crore (Rs 5.47 billion), Ahmedabad district has topped the chart for highest number of non-performing asset (NPA) properties in Gujarat for a period of 12 months from February 2011 to February 2012.
SBI's gross non-performing loans jump to 5.15 per cent from 4.19 per cent
If warranted they can initiate criminal proceedings including filing of FIR, a Finance Ministry official said.
While a DFI will help banks derisk their loan portfolios, creation of a bad bank will clean up their balance sheets.
NPA percentage in loans may touch 10% by March 2013, up from 5% in March 2011.
If there is a morality tale here, it is that debt and death spare no king.
Net NPA ratio for private banks declining for last three years.
The financial sector has been deeply troubled since 2013. It is now in a full-blown crisis, warns Devangshu Datta.
Reserve Bank has almost finalised the structure of Central Fraud Registry.
Unlike the earlier experience post the global financial crisis, where nearly 90 per cent of the restructuring happened in the corporate loans, the non-corporate segment, which includes small businesses, agricultural loans and retail lending, will account for a higher share this time.
The Reserve Bank of India (RBI) has just allowed banks to go a bit easy on provisioning norms for non-performing assets (NPA) in response to their urgent supplications.
With a new management in place, State Bank of India (SBI), the country's largest lender, is planning to focus on non-performing assets.
'It is going to be a buyers' market and you will get a good number of companies at reasonable valuations and that's when one has to be very greedy.'
The bank had a net profit of Rs 1,583 crore (Rs 15.83 billion) in the April-June quarter of 2011-12 fiscal.
According to a government reply in Lok Sabha, as on June 30, 2017, there were about 109,598 cases pending across debts recovery tribunals, with recovery dues of Rs 635,500 crore.
The restructuring of banks' loans to troubled airlines, which the Reserve Bank of India (RBI) has allowed, is taking its time.
Five ratios you must know before putting your money into banking stocks.
Move to increase 90-day window to 120 days to give more time to borrowers to service loans.
Bank had registered a standalone net profit of Rs 1,263 crore in the same period a year ago
While the COVID-19 pandemic has completely halted production and new orders, exporters say that payments have also been delayed for the shipments sent before the lockdown. Exporters say some customers are not taking delivery of the shipments because they have shut shop. Ready-made garment players had been hoping for a revival in demand in China but with the virus spreading to Europe, the US and other major markets, there are no orders coming from the major retailers.
Reserve Bank deputy governor Anand Sinha on Wednesday said though bad loans are rising in the system, the central bank does not see it a systemic risk as yet.
The meeting with the top officials of public sector banks is scheduled for March 5, a senior finance ministry official told PTI.
The total provisioning for non-performing assets rose to Rs 3,428.59 crore (Rs 34.28 billion) during the December quarter, up from Rs 2,766.18 crore (Rs 27.66 billion) in the corresponding period last fiscal, SBI said in a filing on the BSE.
According to recent finance ministry data that captures the performance of public sector banks, instances of home loan defaults contributing to gross non-performing assets was the highest in the category of loans up to Rs 200,000.
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