Page 3 - Npas

India's banking story still evolving

Banks have started seeing signs of growth in credit. Retail loans still remain the growth driver but money has also started flowing to the corporate sector

Price discovery in the times of NARCL

NARCL has a competitive advantage over private asset reconstruction companies, because it comes with deep pockets and a government guarantee

LIC provisions up, NPAs down ahead of listing: FY21 annual report

LIC's revenue or total income growth in FY21 was the best in five years

Banks' bottom line gets a booster shot as bad loans continue to fall

Gross NPA ratio has come down to 6.9 per cent as of end September 2021, according to Reserve Bank of India (RBI) data

Mahindra Finance aims to reduce its net NPA below 4% by March-end

Non-banking financial company Mahindra and Mahindra Finance is aiming to reduce its net non-performing assets (NPA) ratio to below 4 per cent by March-end. In the quarter ended December 31, 2021, the company's net NPA (stage 3 assets), stood at 5.63 per cent (as per IND-AS accounting norms). Under the Reserve Bank of India's Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances (IRACP), released in November last year, its net NPA was at around 11 per cent in the third quarter of the current fiscal. Its Vice-Chairman and Managing Director Ramesh Iyer said the company is committed to reducing net NPAs to below 4 per cent under IND-AS and below 6 per cent under IRACP, by March-end. The non-bank may be required to make an additional provision in the range of Rs 500 crore to Rs 1,500 crore in Q4 FY22 in order to bring the net NPA below 6 per cent under IRACP norms. Its gross NPA as per IND-AS was at Rs 7,223 crore (11.30 per cent) and unde

Economic Survey: Banks took Covid shock well but some impact is yet to come

According to the survey, the banking system is well capitalised and the overhang of NPAs seem to have structurally declined even allowing for some lagged impact of the pandemic

Top headlines: LIC gets IPO-ready, NBFCs brace for headwinds, and more

Business Standard brings you the top headlines at this hour.

Shadow banks brace for headwinds as tighter dud-loan norms start to bite

Most MSMEs have seen a delayed payment cycle, and spend much time and resources on the collection of dues owing to the pandemic

Rs 50,000 crore of NPAs may be transferred to NARCL in FY22

Overall, 38 accounts worth Rs 83,000 crore identified: SBI chairman

LIC's net profit zooms to Rs 1,437 crore in H1FY22 ahead of IPO

The government is expected to mop up around Rs 1 trillion from LIC's IPO

ECLGS stopped 14% of loans from slipping into NPA, says SBI report

The scheme has saved around 15 million jobs and stopped 14 per cent of outstanding MSME loans from turning into non-performing assets (NPAs)

Bank NPAs may go beyond 8% by September 2022, says RBI report

Going forward, as the economy recovers and credit demand rises, banks will need to ensure availability of sufficient capital to support credit growth

Banks' gross NPAs may rise to 9.5% in Sept 2022: RBI report

The gross non-performing asset ratio of scheduled commercial banks is likely to increase to 9.5 per cent in September 2022 from 6.9 per cent in September 2021 in a severe stress scenario

What are the different types of loans?

According to the RBI, banks have written off over Rs 2 lakh crore of bad loans in the fiscal ended March 2021. Find out more about the types of loans and when they are categorised as bad

SBI invites bids to sell NPA account KSK Mahanadi Power with Rs 4K cr dues

SBI to sell an NPA account KSK Mahanadi Power Company, with total outstanding against the company standing over Rs 4,100 crore.

Tightening of norms may increase NBFCs' headline NPAs by one third: Ind-Ra

Tightening of norms may increase non-banking finance companies' (NBFCs) headline non-performing advances (NPA) by around one third, India Ratings and Research (Ind-Ra) said.

Strict norms to push NBFCs bad loans by 1.6-1.8% by March 2022: Icra

An increase of up to 80 basis points is expected in the case of housing finance companies, taking the NPA level to 3.8%

Our action against defaulters helping banks cut NPAs: FM Sitharaman

Last week, prime minister Narendra Modi had said banks have managed to recover more than Rs 5 trillion from defaulters

Amid Covid, diversification remains even more elusive for Bandhan Bank

Even after seven years of operations, Bandhan's concentration on micro loans remains high

No more CAG vs govt; data will dictate history, says PM Narendra Modi

Modi said the NPAs of the banking sector had continued to rise because of wrong practices and lack of transparency followed by the earlier regime