Industry observers have promptly branded the growth in some of the core sectors in the second quarter as ĆĀ“encouragingĆĀ“ and ĆĀ“first signs of recoveryĆĀ“ for the infrastructure sectors.
Tag: NPA
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Robust regulation for infrastructure is a necessary…
Although her bank itself has been lending to infrastructure for about a decade, she says that infrastructure finance is too infantile to be assessed for quality shedding light on the long-drawn and complex learning process the sectors and their financiers are experiencing.
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Domino effects of stuck cash
NPAs are at best symptomatic of a deeper problem among infrastructure projects in particular, among those on public-private partnership (PPP).
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Banks want easier implementation of SARFAESI Act
Some bankers suggest Reserve Bank of India (RBI) to bring about enabling framework for effective implementation of SARFAESI Act. Bankers argue that despite the existence of this act, they face difficulties at the field level in taking physical possession of mortgaged properties from defau
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Banks adequately capitalised despite rising bad loans
In its annual report, Reserve Bank of India (RBI) said the banking system is adequately capitalised despite the rising trend in the gross non-performing assets (NPA). The gross NPA rose to 4.4 per cent of the total advances by March 2014 from 3.42 per cent a year ago.
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State-run banks asked to do due diligence themselves
State-run banks have been asked to conduct due diligence of their own on the company or projects it intends to lend instead of the existing practice of relying on lead banks. Union finance ministry asked state-run banks that sanctions loan to sign on the dotted line only when they are satisfied with the appraisal.
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S&P expects banks’ performance to be under stress
A report from Standard & PoorĆās (S&P) warned that the declining asset quality of banks in India would affect their performance adversely. Recently, the global credit rating agency released the report titled ĆāSlack Economic Growth Dents Recovery Prospects for Indian Bank. In the next 18-24 months, the Indian banking sector may not recover because of sluggish economic activity and
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S&P expects banks’ performance to be under stress
A report from Standard & PoorĆās (S&P) warned that the declining asset quality of banks in India would affect their performance adversely. Recently, the global credit rating agency released the report titled ĆāSlack Economic Growth Dents Recovery Prospects for Indian Bank. In the next 18-24 months, the Indian banking sector may not recover because of sluggish economic activity and
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State-run banks recover bad loans
Several state-run banks have announced improvement in the recovery of bad loans as they took steps like setting up specialised asset management recovery branches (ARMBs) for this purpose. For example, Corporation Bank could reduce non performing asset (NPA) through cash recovery and upgradation to the extent of Rs 1,509.30 crore in the fisca
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Tighter provisioning norms may hit banks’ margins
Following the tightening of norms on provisioning for restructured loans by Reserve Bank of India (RBI), banks might have to set aside Rs 1,500-2,500 crore as provisions in 2013-14 for their existing recast loan book. Ratings agency Icra said this in a report. Recently, the central bank said banks have to raise provisioning for the existing stock of restructured assets to 5 per cent in a phased manner over three years from the