Non Performing Loans

While the immediate crisis may be averted, it is unlikely that it will vanish completely as long as real investments fail to yield returns

Systemic risk in Indian banks remains high due to COVID-19 second wave: S&P

S&P said the balance sheet weakness in smaller businesses is likely to contribute to incremental non-performing loans (NPLs) for Indian banks.

Bad bank only a short-term solution for NPAs, structural reforms needed: Macquarie

The Economic Survey of this year recommended a ‘bad bank’ to kickstart the resolution of non-performing loans in the banking industry. However, this is not a definite solution for the system, believes Suresh Ganpathy of Macquarie Capital Securities India.

ECB wants "ambitious and realistic" push to cut unpaid bank loans

The European Central Bank expects euro zone banks with high levels of unpaid loans to submit "ambitious and realistic" plans to bring them down, it said on Monday, as it published guidelines on non-performing loans (NPL).

Likely to see improvement in collection by March: M&M Financial

M&M Financial Services expects March to be a good month for collection with good sowing and harvest. The company has seen a good growth in disbursement in January compared to December.

Cholamandalam sees NPAs declining; CVs to receive greater focus

Everybody in the NBFC space has seen a decrease in cost of funds and the company per se has shifted their mix more towards debentures, said Vellayan Subbiah, Managing Director, Cholamandalam Investment and Finance.

ICICI vs Axis: Which bank should you bet your money on?

The brokerage firm says PSU banks should remain structurally challenged given high NPL formation, weak coverage, very low pre-provision operating profit (PPoP) buffers and low capital while private banks should keep gaining share in profitable areas.

Q1 NPA weighed by 3 A/cs turning bad but worst over: PTC Fin

In an interview to CNBC-TV18, Pawan Singh, Director & CFO of PTC India Financial Services spoke about the latest happenings in his company and sector.

NPA of consolidated book may be 50 bps higher post merger: SBI

Larger gains from the merger of associate banks will be seen only over 1-2 years, B Sriram, MD and Group Executive- National Banking at State Bank of India.

Equity sell-off next yr as China starts printing money:Analysts

Global equities are set to enter a difficult period in the second half of 2017 and a confluence of three major factors will see a sell-off in stock markets, according to analysts at Credit Suisse.

Bad loan recovery, account upgrades better in Q1: PNB

In an interview to CNBC-TV18, Ananthasubramanian says the bank's savings deposits grew 14 percent year-on-year during the quarter. Also, the share of Current Account and Savings Account (CASA) funds has risen to 41.4 percent vs 38.9 percent on a YoY basis

Fitch assigns BoI's creditworthiness with speculative grade

However, the long-term Issuer Default Rating (IDR) has been rated with a good credit quality of 'BBB-' with a stable outlook.

China's bad-loans ratio reaches 1.81% in Q2, highest since 2009

Shang Fulin, chairman of the China Banking Regulatory Commission (CBRC), urged banks to elevate risk management to a "more prominent" place and take measures to "rein in the rapid rise of non-performance loans" at the regulator's half-year meeting, according to a statement on the CBRC's website.

Banks' gross NPA levels to be at 8-8.5% in FY17: Icra

"Gross NPAs could be nearing peak levels. We project banks gross NPAs to be in the range of 8-8.5 percent by March 2017," it said in a report here.

Indian banks need $90 billion to meet Basel III rules: Fitch

India's banks will need about USD90 billion to meet global Basel III rules which are due to be fully implemented by March 2019, Fitch Ratings said, calling the requirements "onerous" given the lenders' weak asset quality and internal capital generation

Fitch downgrades banking outlook to negative on high NPAs

Rating agency Fitch has downgraded the banking sector outlook to negative, from stable, due to more downside risks emanating from rising stressed loans and weak corporate earnings, which may further roil banks

HDFC Ltd Financial Results for the Year Ended March 31, 2016 Standalone & Consolidated

Performance Highlights   Standalone profit ...

HDFC Ltd Financial Results for the Year Ended March 31, 2016 Standalone & Consolidated

Performance Highlights   Standalone profit ...

Hopes rise over RBI's lending-boosting efforts

Governor Raghuram Rajan cut the marginal standing facility rate, i.e. the amount banks can borrow from the RBI for emergencies, by 75 basis points and said he will ensure liquidity conditions are closer to neutral instead of the previous standard, a 1 percent deficit of net demand and time liabilities (NDTL).

Wary on PSU banks as asset quality stress may remain: JP Morgan

Considering the pressure from both existing and incremental non-performing loans (NPLs), the industry's earnings estimate has been pared by over 20 percent, the JP Morgan note says adding, "Slow growth and high real rates should continue to be an overhang."

Risk to PSU banks‘ asset quality may stretch to FY17: Goldman

"We currently forecast stress loans to peak in FY16—but see risk to asset quality stretching into FY17 if the macro recovery continues to be elusive and commodity prices fall," says a report by Goldman Sachs.

'Infuse more capital in PSU banks to avoid rating pressure'

"Consequently, unless the government revises upwards its capital infusion plan for the banks in its upcoming budget, the banks will see negative pressure on their credit profiles," said Srikanth Vadlamani, Moody's V-P and Senior Credit Officer.

Post Q3, CLSA underweight on PSUs; sees value in private banks

According to CLSA, Q4 NPL addition is likely to be over Rs 70,000 crore (though a bit down QoQ) and, like Q3, 90 percent of this could be from PSU banks - their stressed loan ratios are now at 11-23 percent.

Bad loans & loss yet BoB jumps 24%: Why is clean up impressive

Strengthening NPL recovery teams/processes, rebalancing its loan mix by increasing share of better rated corporate loans as well as retail loans, and scaling-up its digital platform are few initiatives it is taking to spearhead its growth forward.

NBFC sector's gross NPL ratio to rise to 7.3% by March 2017

Of the 7.8 per cent gross NPL, 1.5-1.7 per cent of the increase will be due to the shift to 120-day NPL recognition norm in financial year 2016-17 from 150-days at financial year 2015-16.