Indian Banks Loans

Lenders are improving asset quality but they are struggling to recover money

Retail mortgage lending by NBFCs and HFCs to grow at up to 22 per cent CAGR through FY28, led by demand and limited unsecured credit availability, says ICRA

As stress continues to linger in the unsecured segment of retail lending, LAP has emerged as an attractive avenue for banks and NBFCs besides gold loans

Banks have written off non-performing assets (NPAs) or bad loans worth about Rs 16.35 lakh crore in last 10 financial years, Parliament was informed on Monday. Highest amount of Rs 2,36,265 crore was written off during financial year 2018-19 while NPAs worth Rs 58,786 crore were written off in 2014-15, the lowest in the last 10 years. During 2023-24, banks wrote off bad loans of Rs 1,70,270 crore, lower than Rs 2,16,324 crore done in the previous financial year. Banks write off non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, as per the Reserve Bank of India (RBI) guidelines and policy approved by banks' boards, Finance Minister Nirmala Sitharaman said in a reply in the Lok Sabha. Such write-offs do not result in waiver of liabilities of borrowers and therefore, it does not benefit the borrower, she said. Banks continue pursuing their recovery actions initiated against borrowers under the various recover

Banks have written off loans worth Rs 9.90 lakh crore in the last five financial years, Parliament was informed on Tuesday. During 2023-24, banks loan write off was at Rs 1.70 lakh crore, as against Rs 2.08 lakh crore in the previous fiscal, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. Write-off was highest at Rs 2.34 lakh crore during 2019-20, which came down to Rs 2.02 lakh crore in the following year and to Rs 1.74 lakh crore in 2021-22. As per the RBI guidelines and policy approved by banks' boards, NPAs, including those in respect of which full provisioning has been made on completion of four years, are removed from the balance-sheet of the bank concerned by way of write-off, he said. "Banks evaluate/consider the impact of write-offs as part of their regular exercise to clean up their balance-sheet, avail tax benefit and optimise capital, in accordance with the said guidelines and policies of the respective boards," he said in a re

The RBI issued guidelines instructing banks to levy charges rather than increase the interest rate for borrowers who fail to meet the terms and conditions of a loan contract starting January 1, 2024

As regulated entities expand the retail portfolio and tap the new-to-credit segment, more through unsecured loans and with less-than-ideal emphasis on credit histories, delinquencies could rise

The share of such loans declined between September 2020 and March 2022 in private banks and NBFCs but rose for public sector banks

Bank deposits rose Rs 1.69 trillion to Rs 173.70 trillion in the two weeks to Nov 4

Indian banks' loans rose 17.9% in the two weeks to Oct. 7 from a year earlier, while deposits rose 9.6%, the Reserve Bank of India's weekly statistical supplement showed on Friday

A credit score is among the first things a financial institution would check in order to sanction a loan

Banks' loans rose 8% in the two weeks to Jan. 14 from a year earlier, while deposits rose 9.3%, the Reserve Bank of India's weekly statistical supplement showed on Friday.

UP aiming to double MSME exports to Rs 2.40 trillion in 3 years

The debt restructuring process involves a reduction of the interest rates on loans or an extension of its repayment tenure, or both

It will be the second bank after State Bank of India (SBI) to come out with such schemes

The state-owned banks account for a dominant share (around 90 per cent) of impaired loan stock and have cumulatively written-off nearly 30 billion dollars in bad loans over the past three years

Even as banks have written off more loans than before, recovery of bad loans has also improved substantially in the past couple of years

An amount of Rs 1.05 lakh crore was fresh lending, the Department Financial Services said in a statement.

For small and marginal farmers, institutional credit at reasonable costs can act as a catalyst and convert them into vibrant commercial farmers, Jain added

PSBs have been reeling under non-performing assets (NPAs) or bad loans, which total around Rs 8 trillion and have hampered lending, impacting growth