The slippages tend to mars banks profitability, but the tide seems to be turning with sharp reduction in SMA 2 cases and better NPA recovery prospects.As much as Rs 5 trillion of bank loans have deteriorated into non-performing assets NPAs in fiscal 2018, taking the total slippages in the past three fiscals to Rs 13 trillion.
Tag: Banks
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Air India to raise over Rs 3,000 crore for purchasing Boeing aircraft
Air India is looking to raise short-term loans worth over Rs 3,000 crore to partly fund the acquisition of four Boeing 787 planes. It plans to induct these four aircraft — part of the 27 aircraft order placed with Boeing Inc in 2006 — between July and October this year.
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Digital Payment Systems
Banks and financial institutions in India are poised to leverage the benefits of technology, and mobile devices, to increase their presence in under-banked sectors in India, without needing brick and mortar structures.
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CBI investigates diversion of funds
The government has asked highway developers and banks to put their house in order or prepare for their contracts to be terminated.
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Road ministry likely to rebid stuck projs
As a meeting in New Delhi between the government, lenders and concessionaires could not find solutions to 10 of the 19 languishing highway projects, the road ministry is likely to restructure and rebid them.
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Banks to push solar panels
The finance ministry has advised banks to ´encourage´ home loan or home improvement loan applicants to install rooftop solar photovoltaic systems and include the equipment cost in the home loan. G
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Maharashtra to set up NBFC
The mounting debt of Rs 3 lakh crore reeling over Maharashtra is a cause of concern for its finance minister. Further, an interest payment of Rs 26 crore per day is a worry factor too.
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Revival of stalled projects worth Rs.8.8 lakh cr can push growth
Stalled projects worth Rs 8.8 lakh crore, or 7 per cent of GDP, are holding up investments in the economy, impacting corporate balance sheets and public sector banks which have extended loans.
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New norms for infrastructure bonds
The RBI has allowed banks to extend loans up to Rs 10 lakh to individuals against long-term infrastructure bonds issued by them, thus easing loan norms for low-cost housing.
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India requires a deep market for IDFs to be tradable
I believe that the annual fund requirement of these projects will not go beyond Rs 50,000 crore as this will be done in phases, hence planning should be proposed accordingly.