GNPAs

Gross non-performing assets ratio for the banking system is set to improve to a decadal best of 2.5 per cent in 2024-25, domestic rating agency Crisil said on Tuesday. It, however, flagged concerns around unsecured exposures like personal loans and credit cards, and also the microfinance (MFI) loans made by lenders, pointing out that the segments are witnessing a surge in stress. Credit growth is expected to moderate to 14 per cent in FY25 from 16 per cent in FY24 on the back of lower economic growth expected at 6.8 per cent as against 8.2 per cent in FY24, and the regulatory restrictions through interventions like higher risk weights on unsecured lending which has made lenders cautious, the agency said. Its senior director and chief ratings officer Krishnan Sitaraman, however, told reporters that the 14 per cent credit growth will place FY25 as the third fastest year over the last decade. GNPAs, which have led to setbacks for the system in the past and have shown a considerable ..

Indian economy and the financial system remain robust and resilient as the gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent at the end-March 2024, RBI said in its June Financial Stability Report (FSR). Scheduled Commercial Banks' gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio to 0.6 per cent at end-March 2024, it said. "The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability. With improved balance sheets, banks and financial institutions are supporting economic activity through sustained credit expansion," it said. The capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8 per cent and 13.9 per cent, respectively, at end-March 2024, it said. According to the report, macro stress tests for credit risk reveal that SCBs would be able to comply with mini

Total income during the quarter rose to Rs 1,806 crore from Rs 1,628 crore in the same quarter of the previous fiscal, PNB Housing Finance said in a regulatory filing

The gross non-performing asset (NPA) for the quarter reduced to 5.45 per cent, compared to 5.66 per cent in Q3 and 6.21 per cent during the Q4 of FY23

The gross non-performing assets (GNPA) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25, a report said on Friday. GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25, domestic rating agency Care Ratings said in the report. It can be noted that the Reserve Bank of India (RBI) began the comprehensive exercise in the middle of the last decade by instructing banks to classify certain stressed assets as NPAs so that the balance sheets represent a true picture. The rating agency also flagged a list of downside risks, which may result in its estimate not coming true, including a material weakening in asset quality due to the elevated interest rates, the impact of regulatory changes, a tighter liquidity environment and global issues. It said GNPAs surged to 11.2 per cent in FY18 from 3.8 per cent in FY14 due to the AQR process of 2015-16, which pushed banks to recognise NPAs and

Its net interest income rose by 24.4 per cent Y-o-Y to Rs 548.5 crore in Q3, up from Rs 440.8 crore in Q3 FY23

Thrissur-based lender's asset quality slips, expects to recover slippages

Largest private sector lender HDFC Bank on Tuesday reported a 34 per cent jump in its standalone net profit to Rs 16,373 crore for the third quarter ended December 2023. The bank had earned a net profit of Rs 12,259 crore in the corresponding quarter of the previous fiscal year. Its total income on a standalone basis rose to Rs 81,720 crore in the October-December quarter of FY24 against Rs 51,208 crore in the year-ago period, HDFC Bank said in a regulatory filing. On a consolidated basis, the bank's profit increased 39 per cent to Rs 17,718 crore from Rs 12,735 crore. The consolidated total income rose to Rs 1,15,015 crore from Rs 54,123 crore at the end of the same quarter the previous year. On the asset quality side, the bank witnessed a marginal increase in gross non-performing assets (NPAs) to 1.26 per cent of the gross loans by the end of December 2023 from 1.23 per cent a year ago. However, its net NPAs came down to 0.31 per cent from 0.33 per cent at the end of the third

The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent, it said. The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respective

The Indian banking system's asset quality strengthened to a decadal best, with the gross non-performing assets ratio falling to 3.9 per cent as of March 2023, the Reserve Bank said on Wednesday. GNPAs of the scheduled commercial banks are expected to improve further to 3.6 per cent by March 2024, as per the baseline scenario, the RBI's bi-annual Financial Stability Report said. "...the financial sector in India has been stable and resilient, as reflected in sustained growth in bank credit, low levels of non-performing assets and adequate capital and liquidity buffers," RBI Governor Shaktikanta Das said in his foreword to the report. He added that the balance sheets of corporates and banks have strengthened, which present a "twin balance sheet advantage" for growth going forward. It can be noted that the banking system NPAs peaked in the second half of the last decade after the RBI launched an asset quality review and forced banks to recognise hidden stress to ensure that books ...

The gross non-performing assets (GNPA) ratio of green industrial loans, however, has been higher during the same period, especially for PSBs, it said

Board recommends final dividend of Rs 5 per equity share, in addition to interim of Rs 5 per share paid before

India Ratings in a report on Tuesday said these factors, along with rising inflation rate, will impact borrowers cash-flows, which will also hit the asset quality marginally

According to estimates by rating agency CARE Ratings, the write-offs by PSBs in April-December 2022, at Rs 81,000 crore, were lower than the Rs 90,000 crore in April-December 2021

S K Saha, managing director and chief executive of the bank, said the lender is trying to create an image of a niche bank

Stress test show banks capable of absorbing shocks without capital infusion

Indian banks' gross non-performing assets declined to 5.8 per cent, but the present macroeconomic environment can impact lenders' health, the Reserve Bank said on Tuesday. The GNPAs, which touched a peak in FY18 following the asset quality review, have been declining sequentially to reach 5 per cent in September, the RBI said in the 'Trends and Progress of Banking in India' report for FY22 released on Tuesday. The number stood at 5.8 per cent in March 2022, according to the report which also had a strong commitment by the RBI to be not complacent, given the present environment. "Although presently the Indian banking sector remains robust and resilient with improved asset quality and strong capital buffers, the policymakers remain mindful of dynamically evolving macroeconomic conditions that may impinge on the health of regulated entities," the report said. The decrease in the GNPAs was attributed to lower slippages and also a reduction in outstanding GNPAs through recoveries, ...

Impairments on financial instruments double YoY; income from operations almost flat at Rs 2,229.7 cr

'It has been in the range of 20-30 per cent in almost every quarter'

The lender's net interest income improved 12.83 per cent YoY to Rs 35,183 crore for Q2FY23, against Rs 31,184 crore last year