
The crystal ball: RBI report foresees NPA woes
According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.
According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.
With Lakshmi Vilas Bank in its fold, the foreign bank’s branch count jumps over 18 times. But the merger could also open up a potential Pandora's box.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
Industry body Indian Chamber of Commerce (ICC) seeks further relief from the government over the Covid-19 impact on the gem and jewellery sector.
The increase in delinquency rates was not uniform; It was most pronounced for loans against property, home loans, and credit cards. Overall delinquencies improved for auto loans.
Data reveals that the loss-making and NPA-heavy public sector banks have serious efficiency issues.
RBL Bank’s NPAs are rising and the stock is going downhill, but there are enough reasons to believe it is unlikely to end up like YES Bank.
The government’s experiment in hiring talent from the private sector to head public sector banks has ended with former Citibanker P.S. Jayakumar leaving Bank of Baroda.
FM Nirmala Sitharaman will hold similar meetings with representatives from MSMEs, auto, industry associations, financial market stakeholders, and others to address sector-specific issues.
State-owned lenders SBI, BoB, and PNB have all posted profits for the quarter ended June 30. Recoveries have been flat but cutting interest rates on deposits should help increase their margins.