Page 7 - Non-performing Assets

Decoded: What are pro forma NPAs and how does that impact borrowers?

An analysis of results declared by listed banks so far shows that the NPA figures shown in the bank income statements are lower than the ones earmarked on pro forma basis

How RBI plans to revive PMC Bank through a three-pronged strategy

In a first, DICGC to be roped in to fund revival; RBI to open credit line to tide over liquidity issues; minimum capital from promoter to meet 9% capital adequacy ratio; 3 investors submit final offer

Budget 2021 creates investment opportunities, from infra to healthcare

The Union Budget 2021 increased India's healthcare spending by 137 per cent and lifted caps on foreigners investing in the insurance sector. Devangshu Datta explains investments after the Budget 2021.

Bad loans fall to Rs 8.08 trn in Sep 2020 from Rs 10.36 trn in Mar 2018

Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday

Govt to set up asset reconstruction company, AMC to manage NPAs

Finance Minister Nirmala Sitharaman on Monday proposed setting up of an asset reconstruction company and an asset management company (AMC) to clean up non-performing assets in the banking sector. The new entities will help effectively deal with non-performing assets (NPAs) which may see a surge once regulatory forbearance to deal with the impact of COVID-19 is withdrawn. The high level of provisioning by public sector banks for their stressed assets calls for measures to clean up the bank books, the finance minister said while unveiling the Budget for 2021-22. "An Asset Reconstruction Company Limited and Asset Management Company would be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization," she said. Provision Coverage Ratio in most of the banks is over 80 per cent, which means that the lender has made a provision of 80 per cent against ...

The BIC's time to resolve recap issues is now

Inadequately capitalised banks will face problems in increasing their credit portfolios. A credit squeeze on account of banks' balance-sheet constraints would also have larger macroeconomic dimensions

Axis Bank's net profit drops 36% in Q3 due to higher provisions

Provisioning cost rose 33 per cent year-on-year; proforma gross NPA at 4.55 per cent

Axis Bank Q3 net profit declines 36% to Rs 1,116 crore, NII grows 14%

The lender's gross NPAs declined to 3.44 per cent from 4.18 per cent in September quarter (Q2FY21) . Net NPAs stood at 0.74 per cent

Budget Byte: Banks' non-performing assets likely to bulge in 2021

This daily series of graphs provides context to some of the critical issues relating to the Union Budget on February 1

IDBI Bank takes prompt corrective action; all eyes now on Q3 results

The lender has stabilised under LIC ownership, but its exit from the central bank's restrictions may be some time away

What FM Sitharaman may and may not do in her promised 'never-before' Budget

Wish lists are routine as the govt prepares its annual Budget. But its finances are stretched and the pandemic isn't over. Akash Podishetty lists what the FM could announce in the Budget on Feb 1

Best of BS Opinion: Start-up's flights of fancy, powering mobility & more

Here's a selection of Business Standard opinion pieces for the day

A poor idea

Bad bank will only kick the can down the road

Banking: Yesterday, today and tomorrow

With the customer spoilt for choice, the option for the banking industry in the new decade is between going digital or dying

Brace for selective interest in stressed assets

With looming uncertainty, investors will be very selective, cautious and careful in allocating funds towards this asset class

Expect banking revival in 2021

The potential turnaround in banking means the government does not need to act in haste, only to repent at leisure

Banks weigh on shares after Reserve Bank warns of bad loans may double

The blue-chip NSE Nifty 50 index slipped 0.1% to 14,473 and the benchmark S&P BSE Sensex eased 0.25% to 49,143.75

Banks' gross NPAs may rise to 13.5% by Sept: Financial stability report

Banks will have to brace for a rollback of regulatory forbearance that was announced in the wake of Covid-19, and enhance their capital positions, the RBI said

RBI's red flag

Recognition of NPAs in PSBs must be swift

NPA estimates: Street's optimism at odds with the RBI's pessimism

Regulator's projections higher by 250-350 bps, analysts may have jumped gun on faster recovery