Nifty Bank index may hit record levels of 33,000 if it surpasses the resistance of 32,300
The RBI's conscious steps to reduce the repo rate have also lowered the marginal cost of fund-based lending rate across banks, ratings agency India Ratings and Research said
Fitch Ratings estimates that under a moderate stress scenario, Indian banks are around $15 billion short of the capital required to meet a 10 per cent weighted-average common equity tier 1 ratio.
With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said
Avoid banks and NBFCs with a high proportion of unsecured and small, medium enterprises loans
The Reserve Bank of India has imposed a moratorium on the bank and restricted withdrawals to Rs 50,000 per depositor till April 3
Margins may stay strong, but Street will keep eye on asset quality
Farmers, meanwhile, are paying for their seed and fertiliser needs in cash as the loan write-offs have taken them off the credit grid
The bank said this is the first lot of non-performing asset accounts to be sold during the ongoing quarter of the current financial year.
State-owned banks, which account for 80 per cent of the NPAs in the banking system, will see their gross NPAs shrinking 400 bps to 10.6 per cent by March 2020, down from 14.6 per cent in March 2018
Bad loans fell to Rs 8,75,619 crore as on June 2018 and further to Rs 8,64,433 crore in December 2018
Rajnish Kumar added that the Insolvency and Bankruptcy Code has come as a 'very good tool' in the hands of the banks and the financial creditors
the reduction seems to be insignificant given the fact that gross NPAs of state-run banks at the end of FY18 stood at Rs 8.95 trillion
The meeting called by Indian Banks Association was also attended by Finance Minister Piyush Goyal, who had accepted the report of the Sunil Mehta Committee earlier this week
The RBI has been critical of banks for using restructuring schemes to hide the stress
PNB in a statement said the bank had the second highest exposure to Bhushan Steel and will benefit greatly from this acquisition
Propping up bloated and inefficient state lenders would seem to ensure a repeat of the current crisis
MoS for Finance Shiv Pratap Shukla said gross non-performing assets under the 'Industry-Large' category for all banks soared to Rs 5.27 trn as on Dec 2017 from Rs 1.23 trn on March 31, 2015
Sona Alloys has an outstanding of Rs 6.47 billion towards SBI, while Zenith Birla has Rs 1.39 billion
SBI plans to sell a total of 15 such NPA accounts to recover Rs 9.89 bn; IFCI to sell 23 NPAs for recovery of Rs 136.68 bn