Bad Loans

The nation’s growth path should be calibrated in line with its investments needs, the savings in the economy and the level of financial literacy in society. This is important because investments in excess of the economy’s savings levels and ability to service foreign exchange inflows can lead to higher interest rates and inflationary impulses

ED attached Rs 64,920 crore in 1,105 bank frauds, FM says on revival of PSU lenders

"There has been no leniency in recovering bad loans and the process is ongoing."

Ahead of IPO, Hero FinCorp writes off bad loans worth around Rs 1,200 crore

Hero FinCorp recorded a 25 percent rise in AUM in the first nine months of FY24, which grew to Rs 49,127 crore, while disbursals rose 26 percent to Rs 24,979 crore

Why RBI cracking whip on consumer loans is no surprise

A Moneycontrol Banking Central column on October 9 highlighted the central bank’s concerns regarding sharp growth in unsecured loans. On November 16, the RBI cracked the whip

Banks recover over Rs 10 lakh crore in last 9 years

According to the Reserve Bank data, Scheduled Commercial Banks (SCBs) have done aggregate recovery of Rs 10,16,617 crore during the last nine financial years.

Banks write off bad loans worth Rs 2.09 lakh crore in 2022-23: Report

Gross NPAs of banks had fallen from Rs 10.21 lakh crore in FY2018 to Rs 5.55 lakh crore by March 2023, mainly on the back of loan write-offs by banks, the report further stated.

Wilful defaulters owe major banks Rs 88,435 crore, up from Rs 75,294 crore in a year

The list includes private and public sector lenders, like HDFC Bank, Bank of Baroda and Punjab National Bank. In December 2022, RBI data showed that, as on March 31, 2022, the top 50 wilful defaulters owe Rs 92,570 crore to banks. Gitanjali Gems, with loans of Rs 7,848 crore, tops the list of defaulters.

Budget 2023: Microfinance lenders pitch for flexibility in inclusion schemes, tax relaxations and lower borrowing costs

Voices from small lending companies are expecting reforms from the budget pertaining to their core lending business alongside leeway with other financial institutions

Banking Central | 5 key things to watch out in Indian banking sector in 2023

The year 2022 was a rollercoaster ride for India’s banks - RBI’s unprecedented aggression on inflation, arrest of a top banker in a loan scam and continuing collapse of India’s cooperative banks. What’s 2023 hold? Let’s take a look.

Banking Central | How clean are the books of our banks?

The aggressive pick up in credit growth could backfire in later years if the economy doesn’t do well and banks may have to get ready for another round of bad loan cleanup exercise.

MC Exclusive | Punjab & Sind Bank aims to contain slippages below Rs 1,000 crore in FY23, MD says

The bank has set a bad loan recovery target of Rs 2,000 crore and sees gross NPA and net NPA ratios falling below 9 percent and 2 percent in FY23, Swarup Kumar Saha has said

State Bank of India Q2FY23 earnings: Here are top five takeaways

SBI’s profit after tax jumped 74 percent to Rs 13,265 crore in the July-September quarter, up from Rs 7,627 crore in the same quarter of the previous financial year

PNB on track to meet Rs 32,000 crore recovery target from bad assets in FY23: MD

The recovery target is of Rs 32,000 crore for the current fiscal year, and it comes at around Rs 8,000 crore per quarter, Goel told reporters in a post-quarterly earnings call.

NARCL plans to buy 18 distressed accounts with Rs 39,921 crore debt by October 31: Report

The NARCL has created two lists – Phase 1 comprising 8 accounts with debt of Rs 16,744 and Phase 2 having 10 accounts with debt of Rs 18,177.

JC Flowers to win Yes Bank’s distressed loan portfolio as Cerberus-ARCIL back out: Report

Yes Bank is expected to declare JC Flowers ARC as the winner “soon”. It had placed a bid worth Rs 11,183 crore for Yes Bank’s distressed loans and invited counter bids till September 7.

Exclusive Interview | War against NPAs to continue, bad loan recovery target is Rs 2,500 crore in FY23, says Punjab & Sind Bank MD

The state-run lender wants to lower its gross NPA ratio to below 10 percent and net NPA ratio to less than 2 percent by March

Banking sector: What you see may not be what you get

Non-performing asset (NPA) ratios are reducing. But the true picture of NPAs is apparent only when we look at the trend of fresh bad loans — they have been rising every year since the onset of the pandemic 

Chart of the Day: NBFCs are yet to fix their stressed loan book

Non-bank lenders have not been able to reduce their delinquencies in a big way despite the recovery in the economy once the pandemic began to recede.

Chart of the Day: Watch subprime loans closely in PSBs

Public sector banks have the highest proportion of subprime borrowers, the riskiest of retail category characterized by low credit scores,

The bad bank is a placebo; it will work with only limited efficacy

The NARCL strategy resembles trying to use a band-aid to staunch a deep flesh wound; it may work for only a short period and is, at best, a sub-optimal locum for the actual procedure

ABG Shipyard: Case of the ‘biggest banking fraud’ should be investigated by SFIO, not the CBI

As the SFIO cannot start an investigation suo moto, the Central Government must assign the investigation to the agency in the public interest. 

RBI sets new prudential norms, NBFCs get some leeway on bad loans classification

In a circular issued on November 12, 2021, the monetary authority had given time till December 31, 2021 to implement all the stricter prudential norms.

Banks' gross bad loans decline to Rs 8 lakh crore as of September: MoS Finance Bhagwat Karad

Of this, the share of public sector banks (PSBs) in bad loans proportion has also declined 72 per cent against nearly 80 per cent.

New Year may herald first round of bank privatisation, new licences for private entities

The next year brings hope that a decade of bad news in Indian banking ends and will pave the way for far-reaching changes. Yet, the surfacing of the new Omicron variant of Covid-19, has cast a pall of uncertainty.

RBI new norms likely to increase NBFCs bad loans by one-third: Study

The clarification included classification of special mention account (SMA) and NPA on a day-end position basis and upgrade from an NPA to standard category only after clearance of all outstanding overdues.