Rating agency says moratorium extension, easing of working capital loan limits
While filing their financial results for FY20, corporations should adequately address the Covid-19 related concern and its impact on asset quality
Relaxation in the two segments is positive of asset quality recovery, but investors should await clarity from post-results commentary
Banking stocks have lagged the market in the rebound off coronavirus lows, hit on March 23, 2020
RBI doesn't have a choice but to provide some relaxation on the asset classification norms, says Aditya Puri
Slippages ratio for FY20 pegged at 3.5 per cent a tad lower than previous year's 3.7 per cent, but MSMEs, agri and retail are segments that could see fresh stress
The new rules signal a shift away from enhancing asset classification
The asset quality deteriorated for small enterprises (SMEs) as well but with lesser intensity, according to CARE Ratings
In the first half of FY20, asset quality of the sector showed further deterioration with slight increase in GNPAs.
The rising awareness of life insurance as a protection product is giving strong traction to the sector
The Reserve Bank of India should carry out an asset quality review of the non-bank finance companies, Rajan said.
She also said that she held discussions with credit rating agencies on their methodology to assess risk
The state of affairs in the banks had less to do with procyclicality and more to do with politically induced reckless lending to dodgy borrowers.
Results of SBI, ICICI Bank and Axis Bank indicate respite in formation of fresh bad loans; resolution and recoveries will be important for the trend to sustain
The data was released by the Microfinance Institutions Network (MFIN), the representative body of microfinance institutions
While NPA ratios have sharply moderated in the past two years, they are still way ahead of pre-AQR days
State-run banks' standard restructured advances fell to Rs 0.34 trillion by Q3FY19
There were projects which needed fresh capital, new management and new promoters, but banks were wary of raising their commitments to stressed accounts