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NARCL MD & CEO Natarajan Sundar quits, Canara Bank CGM on deputation

Sundar was with State Bank of India before taking charge at NARCL

Reserve Bank of India seeks to lower NNPA of banks for paying dividends

Draft proposes that net NPA ratio should be less than 6%

Banks to remain well capitalised even under severe stress: RBI report

Bad loans from agri remain high at 7%

NaBFID MD bats for re-introduction of S4A-like debt recast scheme

National Bank for Financing Infrastructure and Development's (NaBFID) managing director Rajkiran Rai G has said there is a need to re-introduce the Scheme for Sustainable Structuring of Stressed Assets (S4A) scheme to help infrastructure finance in the future. Rai said at present, there is not a single asset calling out for such help but it is essential to get a facility which will enable "rightsizing of debt" and make it more sustainable. He also said that given the present system, no entity can exploit the S4A scheme by indulging in things like the evergreening of loans. The RBI had introduced the S4A scheme in 2016 and ended in February 2018. Debt was split into sustainable and unsustainable based on cash flows under the scheme, which was focused on corporate loans and also had a threshold above which an account could qualify. "We need to see the context in which it was brought and how it was used. And now, we are talking in a totally different context," Rai told PTI, pushing for

Fedbank Financial Services posts 25.12% growth in profit during Q2FY24

The Net Interest Income (NII) of the company rose by 29 per cent to Rs 207.30 crore from Rs 160.40 crore in the second quarter of the financial year 2023

Banks write off Rs 10.5 trn in 5 yrs, NPA recovery worth Rs 7.1 trn: FinMin

Banks have written off Rs 10.57 lakh crore during the last five financial years, of which Rs 5.52 lakh crore was in respect of loans pertaining to large industries, the government informed the Parliament on Tuesday. "As per RBI data, scheduled commercial banks (SCBs) have written off an aggregate loan amount of Rs 10.57 lakh crore during the last five financial years," Minister of State for Finance Bhagwat Karad said in reply to a question in the Rajya Sabha. The scheduled commercial banks have also recovered Rs 7.15 lakh crore of non-performing assets (NPAs) during the five-year period. "Comprehensive steps have been taken to recover NPAs, enabled by which, SCBs have made an aggregate recovery of Rs 7,15,507 crore (RBI provisional data for FY 2022-23) in NPA accounts, including written-off loans, during the last five financial years," he said. In reply to a separate question, Karad said: "Scheduled commercial banks have written off an aggregate amount of Rs 5.52 lakh crore in resp

Uco Bank Q2FY24 result: Net profit falls 20.3% to Rs 401.67 crore

Uco Bank Q2 result: The bank's gross non-performing assets fell to 4.14 per cent in the July-September quarter as compared to 4.48 per cent in the previous quarter

RBI's stringent norms: Wilful defaulters must be identified within 6 months

NBFCs, co-op banks allowed to name defaulters

Credit growth to moderate to 13.2 pc in FY24, NPAs to improve further: Icra

Credit growth in the banking system's will moderate to 12.1-13.2 per cent in the current fiscal from 15.4 per cent in the year-ago period, a domestic rating agency said on Thursday. Asset quality improvement will continue, while the Gross Non-Performing Assets (GNPA) ratio is expected to come down to 2.8-3 per cent by March 2024, as against 3.7 per cent at the end of the June quarter, domestic rating agency Icra said. Amid the high growth in unsecured credit, the rating agency said there is nothing much to be concerned about on the front, and the vulnerable retail book remains low and manageable. Icra Co-Group Head Anil Gupta termed the credit growth as "robust", despite the slight moderation from the percentage growth perspective, and added that the agency expects the quantum of credit to also be lower at Rs 16.5-18 lakh crore as against the Rs 18.2 lakh crore in the year-ago period. Banks will chase more deposits this year, and the overall deposit growth for FY24 is expected to c

Growth, asset quality expectations may limit downside for SBI Card

Growth in spends was healthy with retail spending up 28 per cent YoY while corporate spends rose 10 per cent YoY in Q1FY24

Private sector banks post robust 37% YoY growth in net profits in Q1

The rise in provisions and contingencies, that for standard loans and NPAs, was 10.8% YoY to Rs 9,596 crore in Q1Fy24

ED registers 490 fraud cases related to NPAs worth over Rs 20 crore

The Directorate of Enforcement has recorded 490 bank fraud cases related to non-performing assets (NPAs) of Rs 20 crore or more in the last 5 years under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), Parliament was informed on Tuesday. "As on July 20, 2023, proceeds of crime amounting to Rs 26,732.68 crore approx. have been attached/freezed, 82 persons have been arrested and 80 prosecution complaints have been filed before the special court, PMLA in these cases," Minister of State for Finance Bhagwat Karad said in a written reply to the Rajya Sabha. Further, he said, assets worth Rs 15,113.02 crore have been confiscated and restituted to public sector banks. In the case of an account classified as NPA, banks initiate recovery action under various recovery mechanisms, such as filing a suit in civil courts or in debts recovery tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filin

Karur Vysya Bank Q1 results: Net profit rises 57% to Rs 359 crore

Private sector lender Karur Vysya Bank on Monday reported 57 per cent rise in net profit at Rs 359 crore for June quarter due to decline in bad loans and increase in interest income. The Tamil Nadu-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 2,216 crore from Rs 1,673 crore in FY23, Karur Vysya Bank said in a regulatory filing. Interest earned by the bank grew to Rs 1,883 crore over Rs 1,474 crore in June quarter a year ago. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 1.99 per cent of gross advances by the end of June 2023, from 5.28 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 0.59 per cent as against 1.93 per cent a year ago. However, Capital Adequacy Ratio of the bank declined 17.67 per cent from 18.98 per cent in the same quarter of FY23.

Central Bank Q1 profit surges 78% to Rs 418 cr due to decline in bad loans

State-owned Central Bank of India on Monday reported a 78 per cent rise in net profit at Rs 418 crore for the June quarter due to decline in bad loans and increase in interest income. The Mumbai-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 8,184 crore from Rs 6,357 crore in FY23, Central Bank of India said in a regulatory filing. Interest earned by the bank grew to Rs 7,225 crore over Rs 5,527 crore in the June quarter a year ago. Net Interest Income of the bank increased by 48 per cent to Rs 3,176 crore in Q1 FY24, it said. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 4.95 per cent of gross advances by the end of June 2023, from 14.90 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 1.75 per cent as against 3.93 per cent a year ago. Net Interest Margin (NIM) of the bank improved to 3.62 per cent, registering a growth of

Unsecured loan portfolios growth highest, credit card NPAs shoot up: Report

Credit card non-performing assets rose 0.66 per cent to 2.94 per cent as of March 2023, a credit information company said in a report on Thursday. The report, which comes amid heightened concerns on the riskier unsecured loans portfolios from the regulator, also said that such products like credit cards and personal loans grew the fastest, the report by Transunion Cibil said. On the asset quality front, credit card balances unpaid for over 90 days stood at 2.94 per cent, which is a 0.66 per cent jump over the year-ago period, while the same for personal loans improved by 0.04 per cent to 0.94 per cent, it added. From a loan growth perspective, outstanding balances on credit cards grew 34 per cent in the year to March 2023, and personal loans were up 29 per cent. Loan against property, a product typically used by small businesses for funding needs, was the fastest-growing retail product with a 38 per cent rise, according to the report. Interestingly, home loans considered by many

Risk management: Not the time to drop guard for Indian banking sector

In the aftermath of the global financial crisis of 2008, regulators across the world focussed on 'conduct' risks

PSBs should follow transparent NPA recognition norms, pursue risk mgmt: FM

Finance Minister Nirmala Sitharaman on Thursday asked heads of public sector banks (PSBs) to ensure fair and transparent recognition of bad loans and pursue robust risk management practices so as to maintain the momentum of growth and profitability. PSBs earned a record aggregate net profit of around Rs 1.05 lakh crore in FY2022-23, almost triple from net profits earned in 2013-14. In the review meeting with the top management of PSBs, discussions were held on the positive macro trends, improved business sentiments, Twin balance sheet advantage' and performance of the state-run banks. All the major financial parameters viz., credit deployment, profitability, asset quality, capital adequacy etc. indicate that the performance of PSBs has significantly improved. They're adequately capitalised, resilient, and have sound financial health. It was noted that the asset quality of PSBs has improved significantly with gross NPAs at 4.97 per cent and net NPAs at 1.24 per cent in March 2023, t

Stellar show by banks, but will it continue?

There are challenges ahead. It won't be easy for the banking sector to put up a better performance every quarter

SBI to factor in climate finance risk: Chairman Dinesh Kumar Khara

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

Bank of Maharashtra emerges as top performer in NPA management during FY23

The Pune-based state-owned lender was followed by HDFC Bank with net NPA falling to 0.27 per cent and Kotak Mahindra Bank clinching the third spot with 0.37 per cent of net advances