bad loans

Analysts are bullish on Bajaj Finance, IIFL Finance, and Navin Fluorine, citing strong quarterly results and positive future outlooks. Federal Bank is seen as fairly valued, while Waaree Engineering's revenue beat expectations despite margin concerns. Investors are watching these key companies closely.

The Reserve Bank of India has finalised new rules requiring banks to provision for expected loan losses from April 2027, shifting to a forward-looking approach. While stricter than current practices, the norms are less stringent than initially proposed, with a wider scope including small finance banks. Banks will have until March 2030 to fully implement the changes for existing loans.

The article highlights a double standard in public discourse, where welfare schemes for the poor face intense moral scrutiny, while massive bank loan write-offs for large borrowers are discussed with softer language. It argues for equal transparency and accountability in both instances, as taxpayers ultimately fund both.

RBI abolished half a dozen existing loan-restructuring mechanisms late last night, and instead provided for a strict 180-day timeline for banks to agree on a resolution plan in case of a default or else refer the account for bankruptcy.

bad loans and credit costs are expected to rise at Indian banks as easy money policies to shore up a pandemic-battered economy may start to tighten, Fitch Ratings said on Monday.

SBI alone has written off bad loans of Rs 40,196 crore, nearly 25 per cent of the total write-offs during 2017-18. This was followed by Canara Bank (Rs 8,310 crore), Punjab National Bank (Rs 7,407 crore) and Bank of Baroda (Rs 4,948 crore).

To deal with the issue of bad loans on a war footing manner, the finance ministry on Wednesday charted out action plans including strengthening of asset reconstruction companies (ARCs) to deal with rising NPAs.

"Macro-stress tests indicate that under the baseline scenario of current macroeconomic outlook, SCBs' (scheduled commercial banks) GNPA ratio may rise from 11.6 per cent in March 2018 to 12.2 per cent by March 2019," the Reserve Bank said.

The Reserve Bank on Thursday said the bad loans of banks are expected to further decline to 5.3 per cent of total advances by March 2023 from a six-year low on the back of growth in credit and declining trend in the stock of NPAs. However, it cautioned that the proportion of bad loans may increase if the macroeconomic environment worsens.

IDBI Bank topped the list in terms of gross bad loans at 28 per cent of gross advances followed by Indian Overseas Bank (25.3 pc); UCO Bank (24.6 pc); United Bank of India (24.1 pc); Dena Bank (22 pc); Central Bank of India (21.5 pc); Bank of Maharashtra (19.5 pc) and Punjab National Bank (18.4 pc, the minister said.

Higher recoveries and slowdown in fresh bad loans are likely to reduce banks non-performing loans (NPAs) to nearly 8 per cent by March 2020, says a report.

The economy appears to be gathering strength although global commodity price swings and turbulent capital flows are a constant reminder to our fast-growing economy that there can be little scope for complacence, if at all any, said RBI Deputy Governor Viral Acharya in a foreword to the Financial Stability Report.

bad loans reported by SBI in its FY19 results were Rs 11,932 crore lower than those identified by the RBI in its annual inspection of the lender.

Non-performing assets (NPAs) or bad loans of the banks stood at Rs 8,95,601 crore at the end of previous fiscal, minister of state for finance Shiv Pratap Shukla said in a written reply to Lok Sabha.

Public sector lender IDBI Bank's net loss widened further to Rs 2,254.96 crore in the third quarter of 2016-17 due to higher provisions for rising bad loans and fall in income. The bank had reported a net loss of Rs 2,183.68 crore in the October-December quarter of previous fiscal 2015-16.

Highlighting concerns over rising bad loans at some banks, RBI governor Raghuram Rajan on Thursday said there was no danger of any financial crisis but it may be early to declare that the worst was over on the non-performing asset (NPA) front.

The Reserve Bank has expressed concern over rising bad loans within the banking system, even as its capital adequacy ratios remain robust.

The Supreme Court judgment will impact the bankruptcy regime that had forced stressed companies to come clean and declare bankruptcy. The SC ruling also means that banks are no longer required to complete the resolution process within a specified time or take the insolvency route.

The Reserve Bank of India has said that the risk of rising bad loans in banks was a concern and there could be a problem with some sectors.

Bloodbath Symptom Of Disease That'll Take Most Of FY17 To Cure

The RBI warned that bad debts may rise again in the next nine months, mainly due to a weak macro situation, higher slippages and low credit growth. It added that large corporates that are flush with cash and don’t need loans now are one of the reasons for the current muted rate of growth of credit off-take in the banking system.

The government on Friday said action has been taken against more than 6,000 officers of nationalised banks last fiscal in cases of lapses that led to bad loans. Finance minister Arun Jaitley said that minor and major penalties have been imposed against erring officials. These include dismissal, compulsory retirement and demotion.

Finance minister Arun Jaitley in a Facebook post, titled "WRITE OFF- NO LOAN WAIVER", defended the process of writing-off bad loans by banks and called it "a regular exercise" conducted to clean up their balance sheets.

With a slowing economic scenario coupled with stretched repayment cycles, bad loans in the Micro Small and Medium Enterprises (MSME) sector have gone up significantly in the second quarter of 2019-20

State-owned banks' non-performing loans are likely to rise by 2-4 percentage points, which will put up to $15 billion recapitalisation pressure on the government in FY21, a foreign brokerage firm said on Tuesday.