Page 2 - Npas

Profitability issues to be fully sorted in next 5 yrs: IDFC First Bank CEO

He says that the recent Reserve Bank of India norms on increased risk weights on unsecured loans impacted the capital adequacy ratio by 100 bps

A performance appraisal of IBC

Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters

Higher demand could offset competitive pressures for housing finance cos

Can Fin Homes would see credit costs normalize after it took a provision of Rs 40 crore for fraud in Q2FY24 but net profit may fall by 5.0 per cent QoQ to Rs 1,390 crore

NARCL's offer prices lower than the liquidation value, say bankers

PSBs say this is the reason for slow progress of NPA sale

RBI proposes banks with less than 6% net NPAs to declare dividends

The Reserve Bank on Tuesday proposed allowing banks having net non-performing assets (NPAs) ratio of less than 6 per cent to declare dividends. As per the prevailing norms last updated in 2005, banks need to have a NNPA ratio of up to 7 per cent to become eligible for declaration of dividends. "The net NPA ratio, for the financial year for which the dividend is proposed, shall be less than six per cent," the Reserve Bank said in the draft guidelines on dividend declaration. The guidelines have been reviewed in the light of implementation of Basel III standards, the revision of the prompt corrective action (PCA) framework, and the introduction of differentiated banks, the RBI said. The central bank has proposed that the new guidelines should come into effect from FY25 onwards. The draft lays down directions need to be followed by banks' boards while considering proposals of dividend payouts, which include consideration on divergence in classification and provisioning for NPAs as ..

RBI defers implementation of norms on penal charges levied by banks

Initially issued in August, these norms were set to be implemented from January 1, 2024

Credit growth to dip to 12-13% in FY25 from 16.5% in early Dec 2023: ICRA

Tight liquidity, hike in risk weights to impact bank loan growth

Bandhan Bank receives Rs 280 crore bid for Rs 776 crore home loan NPAs

Bandhan decided to sell housing loan NPAs, where repayment was due for over 180 days, worth Rs 776.62 crore as on September 30.

Bandhan Bank to transfer housing finance NPAs to asset reconstruction co

The board of private lender Bandhan Bank has approved a proposal to transfer the housing finance NPAs to an asset reconstruction company. In a regulatory filing on Thursday, the bank said the housing finance NPAs will have days past due (DPD) of more than 180 days. The outstanding amount that will be transferred to the company is Rs 775.62 crore as on September 30, 2023. The lender had received a binding bid of Rs 280.39 crore for the NPA portfolio on outright cash consideration basis, it said. It will go for bidding as per the Swiss Challenge Method, and the decision of the sale will be taken based on extant guidelines governing the bidding process and the relevant policy of the bank, the filing said. Meanwhile, Bandhan Bank also said it has signed an MoU with the Assam government, securing the mandate to collect revenue on the accounting portal of the state called GRAS. Under the agreement, consumers can pay all kinds of utility taxes of the Assam government as well as examinat

Excess SLR holdings reason for RBI's comfort on Abhyudaya Co-operative Bank

The gross NPA ratio of the bank is around 12 per cent, and the regulator aims to bring it down to 8 per cent through sustained recovery efforts

Risk weight hikes by RBI: Maintaining credit score now more crucial

If you're finding it difficult to secure a personal loan or credit card, be prepared to offer some collateral

Healthy outlook: Banks profit rises 33.5% to Rs 77,564 crore in Q2

High credit offtake; lower credit costs boost bottom line

BS BFSI Insight Summit: SBI to drive in with Yono 2.0 in nine months

Sees no concern on NPA front; macros in mint condition

How to loot the public sector banks

Banker-borrower collusion has led to a surge in IBC cases, with pre-planned fraud that results in minimal realisable value

Rs 2,000 crore loans to Go First are now NPA: Central Bank of India

The public sector lender's exposure, including government-guaranteed emergency credit to the ailing airline, amounts to about Rs 2,000 crore

Moody's affirms PFC's & REC's Baa3 ratings, sees asset quality improving

The asset quality of the companies, due to their increasing loan exposure to state power distribution companies (DISCOMs), is expected to remain stable

RBI not comfortable with NPAs in UCBs, asks lenders to focus on governance

RBI Governor Shaktikanta Das on Monday said the central bank is "not comfortable" with the gross non-performing assets ratio of 8.7 per cent in urban cooperative banks (UCBs) and asked them to work towards improving the same. Addressing directors of UCBs in the financial capital at an RBI-organised conference, Das urged that such lenders should improve the governance standards, avoid related-party transactions and focus on credit risks, among others. It can be noted that the UCB sector has been fraught with multiple challenges and also witnessed difficult times in the recent past, like the implosion of the city-headquartered Punjab and Maharashtra Bank. Das reminded the directors of the UCBs that banks run on depositors and added that protection of the hard-earned money pooled in from the middle class, poor and retirees is far more sacred than going to a temple or a gurdwara. While the overall picture at an aggregate level looks nice, the situation on GNPAs and capital adequacy is

PNB Housing Finance jumps 8% on recovery of Rs 784 crore corporate NPA

So far this calendar year, the stock has rallied 56 per cent, as against a 6 per cent rise in the S&P BSE Sensex

Banks cautious on lending to small businesses despite high demand, low NPAs

Lenders are cautious on providing loans to the micro, small and medium enterprises (MSME) segment, despite high demand, availability of analytical data and lower delinquencies, a report said on Thursday. Demand for loans from MSMEs grew 33 per cent in the January-March period of the previous fiscal (Q4, FY23) compared to the year-ago period, but the supply of credit was up by only 11 per cent during the quarter, the report by credit information company Transunion Cibil, in association with Sidbi, said. "Credit flow to the MSME sector is slower compared to the increasing demand as lenders follow a cautious approach on commercial lending," the report said. The reluctance of banks is despite the availability of analytical data, which gives more comfort to a lender while taking a decision, and a sharp improvement in asset quality in the segment. The report said unpaid loans between 90 and 720 days improved to 2.4 per cent in Q4 FY23 as against 2.9 per cent in the year-ago ...

Non-performing advances of public sector banks at multi-year lows

The closing stock of write-off pool stood at Rs 7.5 trillion at the end of March 2023, up from Rs 6.8 trillion a year ago