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India’s banking sector is bracing for a significant challenge, with a leading global credit rating agency predicting a 25 per cent increase in non-performing assets (NPAs) over the next two fiscal years.
India’s banking sector is bracing for a significant challenge, with a leading global credit rating agency predicting a 25 per cent increase in non-performing assets (NPAs) over the next two fiscal years.
Answering supplementary questions, she said those enthusiastic about knowing the state of the banks’ NPAs, should know the heart of the problem was the ‘phone-banking’ carried on for 10 years in the UPA rule
In FY2019-20, the number stood at Rs 1,75,877 crore, the RBI said in the RTI reply.
Thakur said the government borrowings from market in FY 2020-21 jumped 57 per cent first quarter
Ironically, the inefficient loan recovery system gave promoters tremendous advantage over lenders. Not only could they play one lender off against another by threatening to divert payments to the favoured bank, they could also refuse to pay unless the lender agreed to extend further credit
According to S&P, 3-8 per cent of loans could get restructured.
The number of NPA accounts rose from 2,08,035 as on March 31, 2014, to 6,17,306 as of December 2019.
Gross NPA ratio is set to decline from 9.3 per cent in March this year to 9 per cent in March 2020.
"Extension of the circular to non-bank finance companies (NBFCs) will help align the loan-loss provisioning norms for the large stressed accounts of NBFCs with commercial banks."
The bank's gross NPA stood at Rs 1.72 lakh crore, 8.5 per cent down from Q3. Its net NPA was at 3 per cent, down 94 bps from Q3. Its gross NPA for Q4 stood at 7.53 per cent against 8.71 per cent reported in the corresponding quarter of the previous fiscal.
