Jun 24, 2020 12:58 PM IST
The expected sharp rise in NPAs brings two inter-linked issues to the fore. One is the need to augment bank capital. Second, we need to conclusively address the bad loan issue so that lending gains traction and supports the economic recovery.
- Apr 28, 2020 11:41 AM IST
The main advantage of the IBC is that it lays out a clearly defined process that seeks to keep the business as a going concern
- Feb 12, 2020 08:35 AM IST
Unless growth picks up and credit conditions improve, the risks to bank balance sheets will linger
- Dec 20, 2019 09:22 AM IST
This group of lenders have learnt how to make most of the opportunity at the bottom of the pyramid
- Dec 12, 2019 11:33 AM IST
Protecting a company from the actions of its promoters will help the acquirer in an insolvency process. But it could create a moral hazard
- Nov 28, 2019 08:47 AM IST
Directed lending will ultimately lead to a NPA pile-up and demands for forbearance. The taxpayer will end up footing the bill.
- Nov 27, 2019 04:25 PM IST
There are lessons to be learnt from historical financial crises. These top lenders almost fit the bill
- Nov 08, 2019 05:35 PM IST
Slashing corporate tax, infusing INR 10,000 crore by the government, and repo rate reduction of 135 bps by RBI are real boosters for the sector
- Oct 31, 2019 02:27 PM IST
Along with restricting inter-corporate loans, the government should also put an end to the practice of omnibus objects clauses
- Sep 27, 2019 04:30 PM IST
Several studies indicate that coal is losing its charm in India. The global trends indicate that global capital is fleeing coal. In such a scenario, is it a smart move for India to open commercial coal mining to 100 per cent FDI?
- Sep 18, 2019 10:06 AM IST
HDFC Bank only took a corrective step on its exposure to the non-finance lender. Vigilant and timely action is no ‘selfish’ act
- Sep 09, 2019 11:56 AM IST
What the government is mulling about multiple bank accounts is a logical follow up of what it did with PAN. Multiple accounts have been one of the major causes of banking frauds and NPA.
- Jul 15, 2019 07:09 PM IST
Further defaults and inability to meet its payments on the part of DHFL will again spread fear in the sector. It will set off a fresh round of risk aversion and liquidity squeeze for NBFCs as banks refrain from funding the shadow banking sector.
- Jul 10, 2019 01:21 PM IST
If India wants to avoid a repeat of the NPA cycle every decade or so, stricter penalties should be introduced.
- Jun 28, 2019 01:31 PM IST
Under RBI’s baseline scenario (without taking into account any capital infusion from the government), system level capital adequacy ratio is projected to come down to 12.9 percent in March 2020 from 14 percent in March 2019. As many as five banks will have a capital adequacy ratio below the regulatory minimum of 9 percent by March 2020.
- Jun 18, 2019 03:17 PM IST
We all know how the inflation targeting framework set the gold standard to bring prices down. To stretch it a little further, why not apply it to break the back of the NPA problem? Over to RBI
- Apr 30, 2019 03:02 PM IST
Yes Bank watchlist also highlights the failure of credit rating agencies and analysts to spot anomalies and catch red flags on defaults and stress early on.
- Apr 25, 2019 11:52 AM IST
It was also important for RBI to ask banks to make this disclosure as it bids to regain the higher ground after recent setbacks
- Apr 23, 2019 11:16 AM IST
New investment proposals in 2018-19 stood at a 14-year low, primarily attributable to a dip in the share of private sector investments.
- Jan 31, 2019 11:53 AM IST
Major accounting frauds typically come to light when liquidity tightens. Given the over 2% point jump in money market rates in India in the 12 months to September the probability of major accounting fraud coming to light in the Indian stock market is growing.
- Jan 18, 2019 01:30 PM IST
India will witness barely any growth in 2019, and its economy could see a negative if the recent downgrading of its GDP growth numbers from 7.5% to 7.2% turn out to be true.
- Dec 27, 2018 09:50 AM IST
Counterintuitively for a sector that is so heavily dominated by regulatory agencies, the road to reform goes through Parliament
- Sep 19, 2018 01:26 PM IST
While there are clearly benefits in this merger, it is important to also note that the mergers of this kind is not a panacea for all the challenges facing PSBs—especially the problem of NPAs
- Sep 13, 2018 06:07 PM IST
The PSB boards are still not adequately professionalised, and the government, rather than a more independent body, still decides board appointments, with inevitable politicisation.
- Jul 03, 2018 03:10 PM IST
A committee of bankers from state-owned lenders will hope that there is a large market of private investors waiting to buy stressed assets.