Recovery of bad loans and fresh slippages or new NPAs will determine the road ahead for the banking industry
Credit costs could stay elevated in the coming financial year
"Every fundamentals indicate towards higher growth and better future next year," Finance Secretary Rajiv Kumar told PTI, reflecting strong optimism going into 2020
On the profitability front, public sector banks profitability ratios were muted because of weak credit growth as well as slow resolution of bad assets.
For majority of the sectors, average risk weight (loan exposure of banks) has declined between March and September 2019
The amount they bought of such NPAs in the 12-month period was less, at Rs 57,506 cr, from the Rs 67,830 cr they acquired in the previous such one-year period
In recent months, there have been several instances of under-reporting of bad loans by lenders
From RBI report on SBI under-reporting bad loans by Rs 11,932 cr in FY19 to Gold's impressive performance in 2019, Business Standard brings the top headlines of the day
The state-owned banks account for a dominant share (around 90 per cent) of impaired loan stock and have cumulatively written-off nearly 30 billion dollars in bad loans over the past three years
Banking and policy experts said government lending schemes had a track record of skimping on due diligence, leading to higher-than-normal levels of bad loans
Some creditors to Altico Capital India Ltd., which focuses on real estate lending, are concerned that the absence of fresh equity in the proposal fails to address a dramatic surge in bad loans
In April 2019, the bank had first disclosed that it had started to provide extra capital, but had not given out the exact levels of the additional provisioning or spelled out the sectors
Even as banks have written off more loans than before, recovery of bad loans has also improved substantially in the past couple of years
Congress leader Anand Sharma also said that the non-performing assets' level of Indian banks had gone up to Rs 11 trillion, from Rs 3 trillion
India is hardly immune to the global trend of sliding fees and trading commissions.
Here are the top news stories that made headlines today
Gross non-performing assets assessed by the Reserve Bank of India were $457 million higher than Yes Bank had disclosed as of March 31
Bank of India had a fall in its net NPA divergence by Rs 329 crore for 2018-19
Resolution plans were to be implemented within 180 days from the end of the one-month review period
The bank had earlier reported NPA provisions of Rs 18,647.23 crore for 2018-19, while the RBI assessment pegged the provisioning at Rs 20,909.23 crore