RBI Report

Speaking at an event today, Air Chief Marshal Amar Preet Singh expressed concern over persistent delays in India’s defence projects.

Non-bank lenders witnessed stress in their asset quality in the first half of the current fiscal, with gross NPA ratio increasing to 6.3 per cent in September 2019 from 6.1 per cent in March, according to an RBI report. However, the net NPA ratio of non-banking financial companies (NBFCs) remained steady at 3.4 per cent between end-March 2019 and end-September 2019, RBI's Financial Stability Report showed. As at end-September 2019, the capital to risk assets ratio (CRAR) of the NBFC sector stood at 19.5 per cent, lower than 20 per cent as at end-March 2019. The report said while the importance of NBFCs in credit intermediation is growing, the IL&FS episode brought the focus on the asset liability mismatches of non-bank lenders, which poses risks to the sector as well as the financial system as a whole. To address this, the RBI introduced the liquidity coverage ratio (LCR) requirement for all deposit-taking and non-deposit taking NBFCs with an asset size of Rs 5,000 crore and ...

Adani Ports and Special Economic Zone raised $750 mn for rupee expenditure, $650 mn for refinancing of earlier ECB, ONGC Videsh and $500 mn for other purposes

In the previous week, the reserves had marginally slipped by $ 70.8 million to $ 430.501 billion but still remained above the $ 430 billion-mark

The government, cognizant of the slowdown, has announced a slew of measures for improving the sentiment in financial markets and prepping up domestic demand in the past two weeks

Among bank groups, PSBs, which constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks

PSBs were found to be severely impacted, with the CAR of 19 of the 21 PSBs likely to go down below 9 per cent in case of such a shock, said the RBI

Power, sugar, shipping companies had in August last year moved top court seeking stay on RBI's February 12 circular

The report also suggested gross non-performing assets (GNPAs) of the PSBs may have peaked in March 2018

PSBs' GNPA ratio may decline to 14.6 per cent by March 2019 under baseline scenario, whereas private banks' GNPA ratio may decline from 3.8 per cent to 3.3 per cent in March 2019

Stress tests reveal that the losses could be around 7.6 per cent and 13.6 per cent of the capital at the system level under the assumed scenarios

The IL&FS crisis posed serious ramifications for the financial sector with the group having as many as 301 subsidiaries

While banks recovered Rs 49 billion of bad loans through the IBC, the amount recovered through SARFAESI was Rs 265 billion in FY18

The Reserve Bank Friday warned that with high bad loans and inadequate provisioning to cover the same, any relaxation in the regulatory capital requirement or risk-weights could be detrimental to banks in particular and the economy in general. The Basel III norms recommend risk-weights for various credit exposures, based on cumulative default rates (CDR) and recovery rates observed internationally. However, CDRs and the loss given default (LGD) rates observed here are much higher than international average, RBI said in its annual report on 'Trends & Progress of Banking.' "Therefore, applying the Basel-specified risk-weights would understate the true riskiness of loan assets carried on the books of our banks," the report warned. The current levels of provisions maintained by banks may not be enough to cover expected losses, it said and added that adequacy of buffers becomes an important issue to absorb expected losses but not adequately provided for, if and when they

The MF regulations mention that schemes are currently allowed to borrow up to 20 per cent of their net assets to meet temporary liquidity needs

Under the current macroeconomic environment, GNPA ratio of scheduled commercial banks may rise to 12.2 per cent of the advances by March 2019

According to the FSR, foreign investors are increasingly keeping their investment position unhedged