Page 4 - Bad Loans

Banks wrote off Rs 10 trillion in last five financial years: Centre

A recent Parliament reply disclosed that scheduled commercial banks have written off loans worth about Rs 10 lakh crore in the last five financial years

PSBs recover Rs 6.42 trn NPAs, written off loans since from FY15 to FY22

From FY16 to FY21, the central government has infused Rs 3.36 trillion of capital in PSBs, while banks have raised an additional Rs 2.99 trillion from the markets

Union Bank expects to recover Rs 15,000 crore from bad loans this fiscal

Union Bank of India expects to recover Rs 15,000 crore from bad loan accounts during the current fiscal year, and a bulk of this would come from accounts undergoing insolvency resolution process. It expects to make recoveries worth Rs 10,000 crore from accounts under the National Company Law Tribunal (NCLT) for resolution of bad loans in 2022-23, the bank said during an analysts conference call post June 2022-23 quarter earnings announcement last week. Replying to a question on recovery guidance for full year 2022-23, Managing Director and Chief Executive Officer A Manimekhalai said: "The recovery will be around Rs 15,000 crore." Besides, the public sector lender is also likely to shift a few accounts under the newly incorporated debt resolution company NARCL. A total of 44 bad loans have already been approved by the NCLT with loan exposure of Rs 4,842 crore. Additional 55 dud accounts cleared by the Committee of Creditors (CoCs) are awaiting approval of the tribunal. The 55 NPA .

China banks rush to raise debt as slowdown hikes potential bad loans

A record amount of fresh money has come from financial markets in China, with banks selling 29% more bonds in the first half of the year compared to last year

Union Bank of India Q1 net rises 32% at Rs 1,558 cr on lower bad loans

Union Bank of India on Tuesday reported a 32 per cent rise in standalone net profit to Rs 1,558.46 crore for the quarter ended June 2022, helped by a fall in bad loans

Karur Vysya Bank Q1 net doubles to Rs 229 cr, interest income up 17%

Operating profit for up 15% YoY, major improvement seen in bad loans

Central Bank of India Q1 profit rises 14.2% to Rs 234 cr; bad loans drop

Central Bank of India on Monday reported a 14.2 per cent rise in standalone net profit at Rs 234.78 crore in first quarter ended June this fiscal on fall in bad loans, even as its expenses increased. The State-owned lender had posted a net profit of Rs 205.58 crore in the same quarter a year ago. However, compared sequentially, the profit was down by 24.3 per cent from Rs 310.31 crore in the quarter ended March 2022. Total income during April-June period of 2022-23 increased slightly at Rs 6,357.48 crore, as against Rs 6,299.63 crore in the same quarter of 2021-22, Central Bank of India said in a regulatory filing. Total income was down from Rs 6,419.58 crore in the March 2022 quarter. Bank's bad loans proportions remained high, but fell to 14.90 per cent of the gross advances by the end of June 30, 2022, as compared to 15.92 per cent in the year-ago period. In value-terms, the gross NPAs were worth Rs 29,001.63 crore, up from Rs 27,891.70 crore by June 2021. Net NPAs or bad loa

Bandhan Bank Q1 net profit doubles to Rs 887 cr due to decline in bad loans

Total income increased to Rs 2,844.1 crore from Rs 2,731 crore. Interest income of the lender jumped to Rs 2,514.4 crore from Rs 2,114.1 crore, Bandhan Bank said in a regulatory filing.

YES Bank's deal with Carlyle, Advent on $1 bn stake investment gathers pace

Carlyle's top executives and Advent's leaders in a series of meetings with Yes Bank and SBI's senior management, and RBI officials this week decided the contours of the investment plan

Bad loan ratio of banks likely to fall to 5-5.5% by March 2024: S&P Global

S&P Global Ratings on Thursday said non-performing loans of banks are expected to decline to 5-5.5 per cent of the total advances by March 2024. As per the latest Financial Stability Report published by the RBI, the gross non-performing assets (GNPA) declined to a six-year low of 5.9 per cent in March 2022. "We project the banking sector's weak loans will decline to 5-5.5 per cent of gross loans by March 31, 2024. Likewise, we forecast the credit costs to stabilise at 1.5 per cent for fiscal 2023 and further normalise to 1.3 per cent, making credit costs comparable to those of other emerging markets and India's 15-year average," the rating agency said in a report. The small and midsize enterprise sector and low-income households are vulnerable to rising interest rates and high inflation, but it expects these risks to be limited, the agency added. With an economic pick-up, residual stress for these segments should start abating, it said, adding that NPL recoveries are likely to ...

CSB Bank profit nearly doubles to Rs 115 cr in Q1; asset quality improves

Private lender CSB Bank on Thursday reported 88 per cent growth in its net profit at Rs 115 crore in the first quarter of FY23 on the back of decline in bad loans.

Wilful loan defaults grow 10 times since 2012 to Rs 2.4 trn: Report

These defaulters have the capacity to repay their loans but choose not to do so, says a report

'Govt, RBI moves help banks recover Rs 8.6-trn bad loans in last 8 fiscals'

Minister of State for Finance Bhagwat Karad in a written reply to the Lok Sabha said the occurrence of non-performing assets (NPAs) is normal, although an undesirable, corollary to business of banking

YES Bank, JC Flowers in pact for ARC in bid to seal largest ever NPA deal

This is being termed the single-largest bad loan deal

YES Bank's stressed loan portfolio: Understanding what went wrong at lender

The bank, in August, 2021 invited applications for setting up an ARC, planning to hold a 20 per cent stake in it. On the RBI's objection, it agreed to hold a minority stake in the ARC

Only 12-13% of loans given to street vendors turned bad loans: Puri

Union housing and urban affairs minister Hardeep Singh Puri on Thursday said that only 12-13 per cent of loans disbursed to street vendors turned out to be bad loans

Large borrowers' loan accounts and bad loans decline for SCBs: RBI

According to RBI's Financial Stability Report, June 22, share of large borrowers, those having aggregate fund and non-fund based exposure of Rs 5 crore and above, has been declining in recent years

FinMin asks PSBs to expedite NPA resolution; focus on credit growth

According to sources, banks were asked to sanction loans for productive sectors to accelerate the revival of the economy facing headwinds, including from the Russia-Ukraine war.

IIFCL profit surges to 80% to Rs 514 cr in Q4 due to reduction in bad loans

With regard to asset quality, IIFCL has brought down gross non-performing assets (NPAs) to 9.22 per cent from 13.9 per cent a year ago.

State Bank of India looks to offload retail, SME NPAs via portfolio sale

The realisation expected for non-NARCL sales is 35-40 per cent, a senior SBI executive said.