Page 3 - Npas

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

During UPA money was given to not-so-worthy customers resulting in NPAs: FM

Net profits of the Public Sector Banks (PSBs) have almost tripled, increasing from Rs 36,270 crore in FY2014 to Rs 1.04 lakh crore in FY 2022-23, she informed

Tamilnad Mercantile Bank net profit up 11% in Q4 of FY23, expenditure rises

Board recommends final dividend of Rs 5 per equity share, in addition to interim of Rs 5 per share paid before

The F word in Indian banking

At the moment, banks give an opportunity of hearing to wilful defaulters but not fraudsters

Bajaj Finance Q3 net up 40% to Rs 2,973 cr; highest ever quarterly profit

Performance was aided by healthy rise in net interest income, drop in provisions and contingencies

Canara Bank reports 92% rise in net profit in Q3FY23, NPAs fall to 5.89%

Last week, Canara Bank said that is planning to sell its stake in Russian joint venture Commercial Indo Bank LLC (CIBL) to State Bank of India (SBI) for about Rs 114 crore

State Bank is changing its business model, quietly

Going beyond corporate loans, SBI is getting into vendor financing as well as supply chain and cluster financing, the buzzwords of banking these days

NIIF: How a tortoise among hares made due diligence process NPA-free

Only NIIF has so far stayed the course as a viable infrastructure financing institution, using sovereign support

Govt saved banks from Rs 3 trn of NPAs by clearing road projects: Gadkari

The government on Tuesday claimed in the Rajya Sabha that it has saved Indian banks from Rs 3 lakh crore of NPAs by helping clear pending road projects in the country since 2014. Road Transport and Highways Minister Nitin Gadkari informed the Rajya Sabha that there are 415 road projects where 95 per cent of work is complete but have been categorised in the delayed projects category. He said the government would soon carry out state-wise monitoring of all such pending or delayed projects and help clear them at the earliest. "There are 415 projects where 95 per cent of work is complete and are termed as delayed projects. When our government came in 2014, there were projects worth Rs 3.85 lakh projects which were shut for various reasons," he told the house during Question hour. The minister was replying to a question about whether the government has any plan to restart the delayed or stalled road projects in the country and if a further action plan is being prepared after ascertainin

Congress slams govt over rise in NPAs, questions 'unbridled powers' to PSBs

The Congress on Tuesday alleged that NPAs have risen by 365 percent under the Modi government and questioned why "unbridled powers" were being given to PSU banks to "sell off assets at throwaway prices". Congress spokesperson Supriya Shrinate said 38 wilful defaulters have fled the country after swindling banks and asked the government on its plans to bring them back. She claimed that the BJP does not contest elections on issues or its report card but on the face of the prime minister, and said it must answer questions on the rise in non performing assets (NPAs) and loans being written off. "The BJP or the prime minister never contests polls on issues and seeks votes on its report card as they never work. Every election is being contested on the personal background of the prime minister. But, who will answer as to why big haircuts are being given by banks," she told reporters at a press conference. The Congress leader said 61 percent of the fiscal deficit can be funded by this writ

12 PSBs report 50% jump in combined Q2 net profit at Rs 25,685 crore: FM

Finance Minister Nirmala Sitharaman on Monday said the government's efforts to reduce bad loans are yielding result with 12 public sector banks reporting a 50 per cent jump in combined net profit at Rs 25,685 crore in the second quarter ended September. In the first half of FY23, the cumulative net profit of all public sector banks (PSBs) increased by 32 per cent to Rs 40,991 crore. During the second quarter, the SBI reported the highest-ever profit of Rs 13,265 crore. On year-on-year basis, this was 74 per cent higher than the same quarter a year ago. "The continuous efforts of our govt for reducing the NPAs and further strengthening the health of PSBs are now showing tangible results. All 12 PSBs declared net profit of Rs 25,685 cr in Q2FY23 & total Rs 40,991 cr in H1FY23, up by 50% & 31.6%, respectively (y-o-y)," Sitharaman said in a tweet. She further said Canara Bank reports an 89 per cent jump in profit to Rs 2,525 crore as compared to second quarter of the previous ...

PNB to transfer bad loans worth Rs 20,008 cr from 62 accounts to NARCL

NARCL has been set up by commercial banks to aggregate and consolidate stressed assets for their subsequent resolution

Karnataka Bank posts all-time high Q2 net profit of Rs 411 cr, NII up 26%

Mangaluru-headquartered Karnataka Bank has posted an all-time high quarterly net profit of Rs 411.47 crore for the quarter ended Sept-2022. This shows growth in net profit by 228 percent, compared to the Sept 2021 quarter net profit of Rs 125.45 crore. The director board of the bank, at its meeting held here on Tuesday, approved the financial results for the quarter and the half year that ended September 30, 2022. During the half year period, the net profit stood at Rs 525.52 crore, which is also an all-time high against Rs 231.36 crore of September 2021, a bank release said here Wednesday. For the quarter ending September 2022, the net interest income also increased by 26 percent to Rs 802.73 crore from Rs 637.10 crore. The NPAs have also further moderated as the GNPAs reduced to 3.36 percent against 4.03 percent as of June 30, 2022 , while NNPAs also reduced to 1.72 percent against 2.16 percent as of June 30. The business turnover of the bank has touched a new high of Rs 1,41,50

NFRA warns auditors against non-accrual of interest on NPA borrowings

Mere classification of a firm's loans as NPAs by lender banks does not relieve the borrower from its liability towards payment of interest or the principal, the authority says

SBI Card Q2 net profit jumps 52% to Rs 526 crore on low provisions

Impairment losses and bad debts declined 8 per cent YoY to Rs 546 crore but was up 21 per cent sequentially.

J&K Bank to complete transfer of Rs 960 cr NPAs to NARCL by October-end

Jammu and Kashmir Bank will put up for sale non-performing assets to the tune of Rs 960 crore, as part of its efforts to improve its balance sheet, sources in the bank said. The bank is hoping that the process of sale of these non-performing assets to the National Asset Reconstruction Company Limited (NARCL) will be completed by the end of this month, the sources said. Of the six accounts, the JK Bank has an exposure of Rs 230 crore in the now-bankrupt Reliance Naval and Engineering Limited, Rs 188 crore in Jaypee Infratech, Rs 176 crore in Jaiprakash Associates Limited and Rs 126 crore in Coastal Energen Private Limited. Jammu and Kashmir Bank's Rs 960 crore NPAs are part of the Rs 9,234 crore bad assets of the Public Sector Undertaking (PSU) lenders that the NARCL has offered to buy at Rs 3,570 crore in the first phase. The proceeds from the sale of the NPAs, which the NARCL is doing on 15-85 basis over a period of five years, will aid Jammu and Kashmir bank's plans to raise capi