Growth in pre-provision earnings and decline in bad loans will improve profitability of banks in the current fiscal, a report said on Monday. Better profitability will offset increases in capital consumption due to an acceleration in loan growth, helping banks across the system maintain capital at current levels, Moody’s Investors Service said in a report. … Read more
India is considering several operational changes in the Insolvency and Bankruptcy Code (IBC), harnessing digital technology to help remove seemingly insurmountable obstacles of distance or time – and speed up the resolution of bad loans. The Indian Institute of Insolvency Professional of ICAI (IIIPI), which constituted a study group, has recommended greater adoption of digital … Read more
MUMBAI: today reported a net loss of Rs 1,047 crore due to a sharp rise in provisions for bad loans in the quarter and deterioration in asset quality on a reported basis. Analysts had expected the state-owned bank to report a net profit of Rs 1,042.6 crore for the reported quarter. The bank’s provisions for … Read more
The Indian Banks’ Association (IBA) has started the process of identification of bad loans that can be transferred to the proposed bad bank. The bankers’ lobby group has written to the lenders, seeking a list of all bad loans above ₹500 crore. This exercise by IBA could help lenders identify the magnitude of the bad … Read more
In the fiscal ended March 2020, about Rs 55,049 crore of bad loans were put up for sale, down from Rs 1.30 lakh crore in 2018-19, though it is not clear how much of these were finally sold in 2019-20. Synopsis Industry data accessed by ET show that banks have identified bad loans worth Rs … Read more
By Raghuram RajanThe Covid-19 pandemic will create, perhaps, the most significant economic challenge for India in my memory. It does not help that GoI has allowed legacy problems to fester, leaving us ill-prepared to face the pandemic. One such problem is bad bank loans, euphemistically called ‘non-performing assets’ (NPAs).In his insightful new book, The Quest … Read more
A mistake from 2008 may return to haunt India’s economyIn all the 30 most severe credit boom episodes around the world, where credit in the economy grew at a speed faster than the economy itself for five years or so, GDP growth in the next five years halved in those countries. This includes Japan in … Read more