Moody's also revised outlook on the bank to positive, saying given the high amount of non-performing loan (NPL) recognition already done, we expect the NPL formation rate to significantly decline.
Speaking to CNBC-TV18, Harsh Wardhan Modi of JP Morgan says that while resolutions take long time, recognition is the first step towards resolving the issue.
NBFCs have put up an impressive show the whole of last year. But experts tracking the sector are turning a tad cautious. An FY16 annual report analysis put out by domestic research house Emkay also lists out certain pain points for the sector, particularly for asset financing companies.
The full year growth will be benefited by a good monsoon, recently introduced 7th Pay Commission, clearance of key reforms, favorable fiscal monetary policy and continuation of foreign direct investment (FDI) inflows, says Goldman Sachs in a note.
There have been structural issues hindering development of the corporate debt market in India, Khan says, adding, in fact, not many countries have a robust corporate debt market and some countries like India have a bank-dominated system.
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.
The process of cleaning-up banks will continue as per the schedule irrespective of the Reserve Bank chief, says RK Bansal, Executive Director of IDBI Bank.
CNBC-TV18‘s Sapna Das reports that a two-member Oversight Committee has been formed to oversee the proposals floated by banks to deal with non-performing loans (NPLs).
In the financial space, India is doing much better than China as both RBI and the government have taken steps to deal with the non-performing asset issue, says Jonathan Schiessl of Ashburton.
The government has announced Rs 70,000 crore capital infusion for 22 public sector banks by March 2019. Of this, 25,000 crore has already been injected and the government plans to infuse as much during the current fiscal.
While there has been some improvement in the stressed asset situation, things are far from perfect for banks, says Srikanth Vadlamani of Moody's Investors Service.
Speaking to CNBC-TV18‘s Ritupurna Bhuyan, Veerappa Moily says that the NPL situation reflects efficiency of the governing body and that the Reserve Bank has not done enough to control the matter.
Capital requirements of PSU banks for provisioning of bad loans are likely to shoot up exposing them to possible downgrades, S&P said today as it trimmed outlook on Bank of India to 'negative' from 'stable'.
Investors should look past the monetary policy event to be held today and focus on larger developments that have the potential to reform the banking system, says Economist Taimur Baig of Deutsche Bank.
Speaking to CNBC-TV18, Sharad Sharma, MD said higher provisioning for non-performing loans (NPLs) was done as per the Reserve Bank‘s directives.
Speaking to CNBC-TV18, Deepak Shenoy, founder and Chief Editor of Capital Mind says that though China remains a large risk, but may not hurt India largely.
The IMF's Jose Vinals said that while important things had been done in Europe, and the euro zone in particular, to shore up the banking sector â€“ such as regulations requiring banks to have a certain amount of capital â€“ more needed to be done to clear up the bad loans.
Rajiv Lall, MD & CEO of IDFC Bank believes that banks will have to be more payment bank-like to compete with payment banks.
C Ilango, MD of Can Fin Homes Limited expects benefits of product mix and low borrowing cost to continue in coming two quarters.
Much of the slippages during the quarter have come in the corporate and SME loan accounts, says Shyam Srinivasan, MD & CEO of Federal Bank
The 8 percent rally in the Indian stock market since its recent September 7 low has removed some of the "dislocations" that previously existed, says Sanjeev Prasad of Kotak Institutional Equities.
IDBI Bank had registered a case with the Central Bureau of Investigation (CBI) on First Leasing Company and its directors for cheating and causing monetary loss in 2014.
"The ongoing tightening of non-performing loans (NPL) recognition norms mean that the minimum standards for NBFCs will match those of banks, a credit positive," Moody's Vice President and Senior Credit Officer Srikanth Vadlamani said.