Page 8 - Bad Loans

Indian banks' bad loans may rise significantly: Financial stability report

Indian banks may see bad loans double despite signs of an improvement in the economic impact of the Covid-19 pandemic

NPA classification period likely to get 30-day extension as bad loans mount

Move to increase 90-day window to 120 days to give more time to borrowers to service loans

Create banks focused on bad loans crisis, says CII in budget suggestion

Market-determined price discovery mechanism for resolving stressed assets is important in the pandemic, says association

Past imperfect, present better, future uncertain

Incidents of corporate loans turning bad could be less than anticipated, but the banks' challenge will be retail loans. Large-scale job losses will have a bearing on the retail portfolio

PSBs may find it hard to raise money on asset quality, governance concerns

While the banks have cleaned up books and the space has seen consolidation after the merger exercise, the impact of big-ticket frauds of the past and the bad-loan burden remain an issue

Bad loans set to rise in H2 of FY21 despite improving outlook: Axis Bank

The lender's asset quality had improved both sequentially and year-on-year in Q2

Guaranteed loans for stressed assets out of existing Rs 3 trn credit line

Scheme to be applicable to all 26 sectors identified by K V Kamath panel along with health sector, with past dues from Rs 50-500 crore as of 29 February, 2020

Bad loans in Indian banking sector to rise in next 12-18 months: S&P

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is "masking" problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of Non-performing loans (NPL) to total loans declined consistently so far this year. "While financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non performing asset," S&P Global Ratings credit analyst Deepali Seth-Chhabria said. In its report titled "The Stress Fractures In Indian Financial Institutions", S&P said with loan repayment moratoriums having ended on August 31, 2020, NPLs in the banking sector will likely shoot up to 10-11 per cent .

Bank Employees' Association wants LVB to be merged with a PSU bank

RBI's role should be thoroughly probed, says AIBEA

The post-lockdown scars

As economic indicators and tax receipts improve, evidence of stress begin to appear too

Top headlines: HDFC Q2 profit tanks 28%, factory output hits decade high

From NIIF foraying into road and highway sector to HDFC Q2 profit declining, Business Standard brings you top news of the evening

Bad debt will hinder India's economic recovery: Ex-RBI Guv Subbarao

Even before the pandemic struck, India's financial sector was going through tough times

Axis Bank posts net profit of Rs 1,683 cr in Sept qtr as bad loans decline

The bank's total income rose marginally to Rs 19,870.07 crore in the second quarter of 2020-21, from Rs 19,333.57 crore in the same period last year, it said in a regulatory filing

Looking at the canary: Do SBI Cards' bad loans have a deeper meaning?

If Covid-19 causes a fresh havoc to government-bank finances, it could be back to the old story of large-scale losses prompting further capital infusion by the government, writes T N Ninan

Yes Bank posts Rs 130 cr net profit in Q2 despite spurt in bad loans

The private sector lender had posted a net loss of Rs 600 crore in the corresponding quarter of previous fiscal.

IDBI Bank Q2 profit at Rs 324 cr; brings down provisions for bad loans

Compared sequentially, the bank registered a 125 per cent jump against the first quarter net profit of Rs 144 crore, IDBI Bank said in release

Centre to frame scheme to waive moratorium interest; SC to hear case today

Waiver may cost Centre Rs 5,000-7,000 crore

Left out in the cold: With no support, NBFCs likely to be in a bind

Non-banking financial companies may well face a second wave of liquidity problems after the loan moratorium is lifted, writes Raghu Mohan

Troubled debt: Cracks emerge in India Inc's loan recast plans over ICAs

Private banks may prefer to make extra 20% provisioning and walk out

Lenders want govt to offer moratorium interest relief to borrowers

Waiver may cost banks Rs 10,000 cr, says IBA