Page 2 - Financial Stability Report

A poor idea

Bad bank will only kick the can down the road

Asset quality of NBFCs may deteriorate further: Financial stability report

While credit extended by them has fallen substantially, the sector has seen an increase in bad loans ratio, too

Capitalisation worries for banks to get bigger: Financial stability report

The low valuations of state-run banks also make it difficult for them to tap the market

Financial stability report delayed as govt wants to 'consult' RBI

Different stance on NPAs will be the discussion point; report was slated to release on Wednesday

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

RBI policy likely to address the issue of financial stability: Expert

The issue of financial stability in monetary policy has always been an unsettled issue, ever since the global financial crisis

Disconnect between financial markets and real sector growing: RBI report

Report says despite broad stability in financial markets, pandemic could amplify financial vulnerabilities, including corporate and household debt burden in the case of severe economic contraction

Debt MFs vulnerable to large-investor exits: Financial Stability Report

Report says pullouts from funds could be concerted in times of stress

Impact of loan moratorium on private NBFCs, HFCs can be substantial: RBI

In March, the RBI had announced a moratorium on repayment of term loans till May 31. It was later extended for another three months.

Indian financial system sound but Covid could spike bad loans: RBI

Gross NPAs of banks may rise from 8.5% this March to 12.5% by March 2021 but could worsen to 14.7% under very severely stressed scenarios. However, no bank will fail, apex vank says in FSR

Financial stability needed even if fiscal deficit rises: CII chief Kotak

The CII president is not in favour of waiver of interest by banks during the moratorium period

Behind large numbers: When will corporate investment cycle fire up?

A more granular analysis of FY19 and FY18 credit data shows that of the 161 and 148 firms which fall in the 'very large accounts' category, 126 firms were common for both the years

RBI to flag bad loan issues with Finance Ministry in pre-Budget meet

Fresh provisioning and telco loans to figure in pre-Budget meet. Inability to find resolution may put Rs 3.8 trn loans at risk

Finance ministry counters RBI, says stress in banking sector declining

According to the FSR, the regulator conducted macro stress tests for credit risks to assess the banking system's resilience to macroeconomic shocks under baseline conditions

Credit portfolio of large borrowers shrinks, GNPAs decline: FSR report

For majority of the sectors, average risk weight (loan exposure of banks) has declined between March and September 2019

Frauds reported in H1 rise to Rs 1.13 trillion, 97% happened earlier

Also, during the first half of FY20, banks reported 398 cases of large-value frauds (above Rs 50 crore) worth Rs 1.05 trillion and 21 cases of frauds above Rs 1,000 cr, worth a cumulative Rs 44,951 cr

RBI raises concerns about companies shopping around for favourable ratings

Non-disclosure of indicative ratings by agencies makes it difficult to identify such instances, according to the FSR

Grappling with stress, PSBs need to build buffers to absorb shocks: Report

State-owned banks have been grappling with stressed loans and limited capacity to absorb further rise in slippages expected due to prolonged economic slowdown

Fixed maturity plans of mutual funds face risk of concentration: RBI report

The report also pointed out that the nature of recent FMP defaults had primarily involved debt obligations backed by pledging of shares of group companies

Stressed banking sector might drag down growth: RBI report

FSR a 6-monthly report issued by the RBI says investment demand remains weak