Budget 2024-25: The introduction of IBC was a key reform introduced in the last 10 years. But privatisation of banks remains an unfulfilled promise.
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.
Even as the deadline to clean up bad loans approaches with the financial year end, banks are likely to see only a 50 percent success in their asset sales worth Rs 15,000 crore to asset reconstruction companies (ARCs) due to pricing mismatch and legal recovery hurdles.
The Reserve Bank is expected to extend the deadline for asset quality review (AQR) of lenders by a few months because of the unusual situation in the financial sector following demonetisation, bankers said.
The estimated actual impaired ration of banks now is 1-1.5 percent than reported numbers, believes Srikanth Vadlamani. Moody‘s had put this ration at 2.5-3 percent earlier.
While schemes released under Raghuram Rajan's tenure have helped, it is essentially the duty of banks to recover losses, says Rakesh Sethi, Executive Director of Union Bank of India.
Bank of India expects its NPA levels to come down in FY17, says Melwyn Rego, Managing director and Cheif Executive in an interview to CNBC-TV18.
Slippages for this quarter has been Rs 4,019 crore, Animesh Chauhan, MD & CEO of Oriental Bank of Commerce told CNBC-TV18.
Strategic debt restructuring is a useful tool, said Kochhar, adding, the bank has successfully managed to find a buyer for one of the companies it had invoked the restructure for.
There will be more stress on asset quality this quarter, says Siddharth Purohit of Angel Broking.
Stress seen on book due to asset quality review (AQR) pending Rs 4384 crore, pipeline of 5:25 cases stands at Rs 700 crore, strategic debt restructuring (SDR) pipeline was at Rs 1200 crore.
Axis Bank, India's third-largest private sector lender, today said its fourth quarter net profit fell 1.2 percent, ahead of a CNBC-TV18 poll that had forecast profits to fall 7 percent to Rs 2,028 crore.
In an interview with CNBC-TV18, Siddharth Purohit of Angel Broking outlined his view on reports that the RBI may have trimmed its list of companies whose loans need to be included in bank's asset quality review. He also spoke about the Equitas Holdings IPO.
Speaking to CNBC-TV18, Sharad Sharma, MD said higher provisioning for non-performing loans (NPLs) was done as per the Reserve Bank‘s directives.