In the last few months, some states has recorded excess to 'large excess rainfall' leading impact on kharif output. The heavy downpours have caused flooding and waterlogging in fields, especially during the critical growth stages of the kharif crop
Schedule commercial continued to record improvement in their asset quality, with the gross NPA ratio and net NPA ratio declining to multi-decadal lows of 2.3 per cent and 0.5 per cent, respectively.
Banks wrote off Rs 92,012 crore worth of loans in FY24, compared to Rs 1.05 lakh crore in FY23, data showed.
The news come after the bondholders threatened the country’s largest wind-turbine maker of legal action after repayment default last month.
Most of the loans to corporates, which later became NPAs, were sanctioned by corporate offices and the boards of individual banks, it alleged.
Why should you be afraid of October 3rd? How does life change? In an interview to CNBC-TV18's Latha Venkatesh, G Padmanabhan, Non-Executive Chairman of Bank of India, Sandeep Parekh, Founder of Finsec Law Advisors, Anjan Ghosh, Head, Corporate Ratings at ICRA and Ravi Kishan Takkar, MD & CEO of UCO Bank answered all these questions.
“Non-performing assets (NPA) resolution ordinance of central government and the prompt correction action initiated by Reserve Bank of India (RBI) are in right direction and are going to help the banks to attempt this NPA menace in its right perspective”, Mahabaleshwar MS, MD & CEO, Karnataka Bank told CNBC-TV18.
The government has notified an ordinance aimed at launching an assault on India's near Rs 10 lakh crore bad loan burden. However, the ordinance is not the only big headline on the non-performing asset (NPA) front. Joint Lender Forums (JLF) have also got more teeth now. Reserve Bank of India (RBI) has issued a notification easing the norms for decision making by lender forums. Watch Latha Venkatesh of CNBC-TV18 explaining the details.
"Loan book for current quarter will remain flat but we expect the loan book to grow between 7 and 10 percent for the next year", Kailash Behati, CFO of Magma Fincorp told CNBC-TV18.
Even as financial market professionals keep themselves busy predicting -- often without success -- how stock prices will behave in the future, Nilesh Shah, MD of Kotak Mahindra Asset Management Company, says retail investors have a simpler recourse to investing: systematic investment plans.
Biggest risk to the market is lack of FII inflows because post Brexit, there could be leadership changes in the UK which could lead to a risk-off, especially for emerging markets, so one must position oneself accordingly, says UR Bhat, Director, Dalton Capital Advisors.
The traffic growth of Indira Container terminal is likely to be around 15 percent, said KK Mohanty, MD, Gammon Infrastructure.
Amit Dalal, executive director, Tata Investment Corp, says one needs to wait for consolidation in the market before making big bets.
Under the bullet repayment scheme, the banks need to maintain loan to value ratio of 75 per cent on the loan amount including the interest.
United Bank is part of the consortium of lenders to Bhushan Steel but is not a part of any additional lending to the company, said Deepak Narang, ED, United Bank of India.
Prabhat Awasthi of Nomura Financial, says that the current rally is unsustainable, because it has been largely driven by defensive shares which have now become expensive and offer limited upside from these levels.
Karnataka Bank has set itself a gross NPA target of less than 2.5 percent and net NPA target of less than 1 percent for this financial year.
CNBC-TV18 poll had estimated net profit at Rs 1,963 crore and net interest income at Rs 4,576 crore for the quarter.
Divyanshi Dayanand says, at SBICAP Securities they are happy with IndusInd Bank's Q2 performance on the profit front and recommend a buy with a target price of Rs 550.
MV Tanksale, CMD, Central Bank of India says that although the slippages in Q1 were huge, to the extent of Rs 2400 crore they expect them to come down below Rs 1000 crore in Q2.
Rajat Rajgharia of Motilal Oswal Securities says, the traffic growth was a positive surprise for telecom stocks and one can stay invested in Idea Cellular.
Tough times are not yet over for PSU banks. These banks are set to see higher provisioning before the end of the financial year.
The Union cabinet cleared the Land Acquisition bill and formed a cabinet committee for the long-pending infrastructure projects in a meeting yesterday. Dhiraj Sachdev of HSBC Global Asset Management spoke to CNBC-TV18 regarding the policy decisions taken by the government and how it will affect the market.
Diwakar Gupta, MD & CFO, State bank of India doesn‘t expect the Banking Amendment bill to have much impact on the bank if it goes through in the Parliament.