Companies seek returns of over 20 per cent but RBI has put restrictions on yields and tenure
The gross NPA of the bank, as a percentage of its total lending, stood at 17.43 per cent in the last quarter
Experts say the move can raise India's external liability significantly and build up risks
SBI is the only outlier in this trend, which has moved faster and made more progress than other PSU banks
EY analyses Nirmala Sitharaman's Budget 2019 for Business Standard, comparing the expectations of five key sectors of the economy and what they actually got in Budgetary provisions
Fog over bank NPA lifts, but shadow over NBFCs lengthens
Report said public sector banks should see their gross NPAs climb down over 400 bps to close to 10.6 per cent by March 2020
Risk is an integral part of the economic activity and lenders can't escape risk
Public sector banks (PSBs) have recovered close to Rs 1.2 lakh crore from stressed assets during the financial ended March, primarily helped by resolution under the Insolvency and Bankruptcy Code (IBC), an official said. During the first half of the previous fiscal, banks recovered Rs 60,713 crore from bad loans. "Due to non-resolution of some big accounts referred under NCLT (National Company Law Tribunal), PSBs could not achieve the resolution target of Rs 1.80 lakh crore. But, these accounts should be resolved in the current financial year," the official said. Banks recovered close to Rs 55,000 crore from the NCLT resolution, the official said. "Compared to Rs 74,562 crore in 2017-18, the recovery in the previous financial year nearly doubled to Rs 1.2 lakh crore," the official said. Two large accounts of Essar Steel and Bhushan Power & Steel Ltd are still pending to be resolved. It is expected that these two accounts should be resolved in the next few months and recoveries ..
Sixty-nine firms of the group have been classified under categories based on their ability to service routine debt obligations
The information asymmetry on credit continues to plague banks
We need to rid ourselves of a tolerance of delayed payments to avoid their consequences
This is slated to help the state-run lenders, who are expected to return to the black after four consecutive years of losses
RBI said in December that the ratio for banks fell for the first time since 2015, though it's still 'high for comfort'
Money permits patronage. Money means power. No wonder details of the crores locked up in NPAs and never repaid loans are top secret
The RBI circular asks banks to identify projects with even a day's default as stressed assets, and conclude resolution proceedings in 180 days
The information presented in the Lok Sabha covers 19 nationalised banks
Raghuram Rajan, former RBI governor, while speaking in mid-2106 about PSBs, blamed bad loans on groupthink and herd instinct
These bad debts constitute 23% of advances of 10 PSBs at the end of FY18
Non-performing assets (NPAs) touched Rs 8.31 trillion at end-December 2017