BUSINESS
Budget 2021: FM announces bad bank, why it is a big step towards addressing Indian banks’ toxic assets worries
Banks are facing a resurgence of bad assets in teh aftermath of COVID-19. A bad bank will help to segregate the existing stock of bad assets from the good so that banks can focus on fresh lending.
BUSINESS
Budget 2021: FM Nirmala Sitharaman announces Rs 20,000 crore fresh capital infusion for PSBs
In the last Union Budget, the FM didn’t allocate any fresh capital for PSBs and asked banks to tap markets for funds.
BUSINESS
Banking Central | What is the biggest Budget gift FM Nirmala Sitharaman can offer PSBs?
Whether the government should keep PSBs alive on life support or exit from the ownership of these banks is the critical question at this stage.
BUSINESS
ICICI Bank Q3: Is the worst over for lender on bad loans front?
The Economic Survey 2021 warned that yet another round of asset quality review is required to assess the actual extent of NPAs in the system.
BUSINESS
Economic Survey 2021 slams 'asleep at the wheel' bank boards, auditors for bad-loan mess
The RBI could consider penalising the auditors of banks where ever-greening happens, the survey has said.
BUSINESS
Economic Survey 2021 calls for another asset quality review, says forbearance can't stay for long
This statement in the survey is significant since a bad loan clean-up will mean banks will see a sharp spike in bad loans from the current level.
BUSINESS
Economic Survey 2021: Yes Bank, LVB events show RBI audits failed to catch 'ever-greening'
The RBI initiated an asset quality review in 2015 under governor Raghuram Rajan to dig up NPAs from bank balance sheets.
BUSINESS
Under-capitalised banks may resort to zombie lending, hurt real economy: Economic Survey 2021
PSBs will require Rs 2 lakh crore over the next two years, as per rating agency Moody’s estimates.
BUSINESS
RBI clears Dhanlaxmi Bank CEO appointment after shareholders’ nod
On January 26, shareholders had cleared the name of Shivan JK for the position of MD & CEO
BUSINESS
If you default on one loan, your other borrowings from the same bank too may become NPAs
This is because the Reserve Bank of India rules require banks to follow NPA classification at a borrower level and not at a product level.
BUSINESS
RBI unveils stricter norms for banks to bolster grievance redress mechanism
The new framework mandates banks to have enhanced disclosures on complaints. Also, it talks about recovery of the cost of redress of maintainable complaints from the banks against whom the number of complaints received in the Offices of Banking Ombudsman (OBOs) are in excess of their peer group averages.
BUSINESS
Budget 2021: Will 'bad bank' take off this time? 5 reasons why the timing could be just right
The idea of a government-funded bad bank didn’t appeal to many before. But, the rising stress in the banking system, after COVID-19, calls for an effective resolution mechanism. A bad bank could make sense now
BUSINESS
Dhanlaxmi shareholders approve Shivan JK’s appointment as next CEO
In September 2019, shareholders ousted former CEO Sunil Gurbaxani.
BUSINESS
Banking Central | What does RBI want to do with NBFC industry?
The big NBFCs are fast losing the regulatory arbitrage they have enjoyed so far. For smaller ones, the Net Owned Funds (NoF) requirement will be too big a hurdle to cross
BUSINESS
Assam Microfinance Bill may give a bigger jolt to banks than pure-play MFIs
Bandhan Bank is among the banks which have felt the heat of the Assam Microfinance Bill. In the third quarter, Bandhan’s proforma gross non-performing assets grew to 7.12 percent, a good chunk of which has come from delayed microloan payments.
BUSINESS
RBI discussion paper proposes tighter rules for big NBFCs
The RBI discussion paper has proposed a multiple layer structure to categorise NBFCs
BUSINESS
Lenders step up efforts to recover dues from Sambandh, MFIN terminates membership
MFIN has terminated the membership of the fraud-hit microlender accused of creating fake loan accounts.
BUSINESS
Analysis | Bandhan Bank shows pressure on asset quality front
Excluding the impact of the Supreme Court order, GNPAs have shot up to 7.12 percent in Q3.
BUSINESS
India must find ways to kickstart investment: RBI says ahead of Union budget
The RBI said recent shifts in the macroeconomic landscape have brightened the outlook
BUSINESS
Analysis | SC ruling on IBC augurs well for bad loans-hit banks
Potential acquirers don’t need to worry now about criminal proceedings post resolution
BUSINESS
CSB Q3 results show asset quality woes; high reliance on gold continues
Private lender CSB Bank has seen a rise in its actual bad loans if one exclude the impact of the Supreme Court order.
BUSINESS
SBI, HDFC Bank and ICICI Bank in 2020 list of 'too-big-to-fail' lenders, says RBI
'Too-big-to-fail' lenders are banks whose failure could impact the financial system as a whole because of their size and interconnectedness. This list is published every year.
BUSINESS
HDFC Bank plans two-pronged approach to fix digital outage
HDFC Bank will implement a short-term plan in 10-12 weeks and work on long-term solutions thereafter that could take 12-18 months.
BUSINESS
Banking Central: Now that DHFL bidding war is over what awaits various stakeholders?
DHFL’s creditors will get around one-third of what they lent to the company but something is always better than nothing.
