RBI looking at business models of banks more closely: Shaktikanta Das
Deficiencies in a bank's business model can spark a crisis in due course, says RBI governor.
Deficiencies in a bank's business model can spark a crisis in due course, says RBI governor.
Deposits touch ₹66,498 crore on the back of 88% CAGR in four years.
In July, the private lender selected JC Flowers for the sale of its stressed loans after a consortium of Cerberus Capital and Asset Reconstruction Company of India (ARCIL) withdrew from the bid.
With liquidations surpassing resolutions, bankers need to look at alternatives to the bankruptcy code.
While NPAs have come off their FY18 peak, they still remain far from their all-time lows.
Despite policy incentives and new PPP contract model to protect private partners from external and unforeseen factors, Ministry of Ports, Shipping and Waterways is saddled with many abandoned projects
Restructured standard advances ratio, especially of services and retail loans, has shown a sharp increase in FY21 though. Some of these could turn into NPAs, adding to banks’ stress assets.
The bank's gross non-performing assets (NPAs) surged to 10.81%.
The ARCs, the quintessential bad banks, can help the commercial banks focus on underwriting good loans, supporting GDP growth.
Not just lack of regulations of private ARCs, continuous writing-off of NPAs and creation of new ones point to gross failures of the IBC and other mechanisms