Page 2 - Bad Loans

HDFC Bank, Hindustan Unilever squeeze amidst middle class struggles

HDFC Bank and Kotak Mahindra Bank are expected to report increases in bad loans, which should lead to higher provisions and weigh on quarterly profit

FinMin to hold meeting with MFI players on Wed amid rising bad loans

Finance Ministry will hold a meeting with microfinance institutions (MFIs) on Wednesday amid rising bad loans and delinquencies across all types of lenders in the sector. According to sources, the Department of Financial Services Secretary is likely to chair the meeting with senior officials of MFIs here. The meeting assumes significance as it comes with the sector showing signs of stress and rising delinquencies. Credit to the microfinance sector by banks (including SFBs), NBFC-MFIs and other NBFCs has decelerated during the current financial year so far after witnessing rapid growth during the last three years, according to a latest report of the Reserve Bank. "The microfinance sector is showing signs of stress, with rising delinquencies across all types of lenders and ticket sizes. During H1:2024-25, share of stressed assets increased, with 31-180 days past due (dpd) rising from 2.15 per cent in March 2024 to 4.30 per cent in September 2024," said the RBI's Financial Stability .

Banks' gross bad loan ratio seen worsening by March 2026: RBI report

This key measure could rise to 3 per cent by the end of March 2026 from a 12-year low of 2.6 per cent in September 2024 for 46 banks under the so-called baseline scenario

SBI looks to sell Rs 2,732 cr of bad loans in ARSS Infrastructure Projects

Bank has invited expressions of interest from entities interested in submitting counter bids for the asset on full cash basis

Indian banks write off Rs 1.7 trillion in loans in FY24, shows govt data

Loan write-offs by banks in FY24 are the lowest in the last five years

Punjab & Sind Bank seeks bids to sell Rs 403 cr bad loans in 9 accounts

Out of the nine accounts put up for sale by the lender, two accounts - Diksha Greens and Star Bazar Group - have been classified as "fraud" accounts, and only ARCs can bid for these accounts

India's shadow lenders retreat as bad loans increase amid crackdown

Bajaj Finance, one of the largest unsecured lenders, is cutting the number of clients with multiple loans, according to a presentation

SBI Card Q2 results: PAT drops 33% to Rs 404 cr as bad loan provisions rise

SBI Card, backed by India's largest lender State Bank of India, said that write-offs and provisions for bad loans jumped 63 per cent to Rs 1,212 crore for the quarter

Bank of Maharashtra Q4 profit jumps 45% to Rs 1,218 cr, bad loans decline

State-owned Bank of Maharashtra (BoM) on Friday reported a 45 per cent jump in its net profit to Rs 1,218 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The Pune-based lender had earned a net profit of Rs 840 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 6,488 crore as against Rs 5,317 crore a year ago, BoM said in a regulatory filing. Interest income grew to Rs 5,467 crore during the period under review, from Rs 4,495 crore in the corresponding quarter a year ago. The bank's board has recommended a dividend of Rs 1.40 per share or 14 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2024. On the asset quality side, the bank's Gross Non-Performing Assets (NPAs) were reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.47 per cent by the end of March 2023. Net NPAs also came down to 0.20 per cent of the advances from 0.25 per cent at the end o

ARCs' bad loan portfolio to touch Rs 1.6 trillion by FY25, says CRISIL

The report said the growth in the future would largely be driven by higher acquisitions, though capped by quicker resolutions expected in retail assets

CEIB launches portal for antecedent verification of prospective borrowers

The Central Economic Intelligence Bureau (CEIB) on Friday launched a portal for antecedent verification of prospective borrowers and bad loans to streamline intelligence clearance process for banks for loan disbursement. The portal was launched earlier this week by CEIB Director General Amit Mohan Govil and SBI Chairman Dinesh Khara in a meeting with all public sector banks in Mumbai. It aims at equipping banks with quick access to information for taking timely decisions with regard to credit sanction, Indian Banks' Association said in a statement. As per 'Framework for timely detection, reporting, investigation etc. relating to large value bank frauds' dated May 13, 2015 and November 6, 2019 issued by the Department of Financial Services, Ministry of Finance, all Public Sector Banks (PSBs) seeks report from CEIB before the sanction of loan exceeding Rs 50 crore and above in case of new borrowers and if the existing borrower's accounts turn into a NPA. In August-2022, at the reques

Decadal perspective: Banks have fewer bad loans under the Modi govt

There has been a rise in unsecured lending. The RBI has expressed concerns over lending practices

'Sebi, RBI share concern about some credit funds masking bad loans'

Private credit funds fall under the broad category of AIFs for the purpose of regulations in India

2,623 wilful defaulters owe Rs 1.96 trillion to Indian banks: Bhagwat Karad

Karad also informed the Lok Sabha that the Centre has written off loans worth over Rs 10 trillion, in the last five years

Best of BS Opinion: Message for Beijing, market expectations & more

Here is the best of Business Standard's opinion pieces for today

Gandhigiri in recovery of bad loans

Every defaulter is not a wilful defaulter who has the capability of paying back and is yet not servicing the bank loan

Reserve Bank of India's lens on rising unsecured loans in banking system

According to RBI's latest Financial Stability Report, advances for unsecured retail loans rose to 25.2 per cent in March 2023 from 22.9 per cent in March 2021

RBI Guv asks urban co-op banks for rigorous follow-up to recover bad loans

Reserve Bank Governor Shaktikanta Das on Wednesday asked urban cooperative banks to go for rigorous follow-up of large NPA borrowers for effective recovery, and not to camouflage their actual financial position by innovative accounting practices. In a statement, the RBI said the Governor held a conference of directors on the boards of select large urban cooperative banks (UCBs) in Mumbai Zone. The Reserve Bank has started engaging with the directors of its regulated entities functioning in different segments of the financial system. Two separate conferences were held with directors on boards of public sector banks and private sector banks in May 2023. The governor reinforced the need for board's involvement in upholding rigorous credit risk management including robust underwriting standards, effective post sanction monitoring, timely recognition and mitigation of incipient stress, rigorous follow-up of large NPA borrowers for effective recovery, and maintaining adequate ...

'Bad bank' sees loan transfers dwindle on valuation, liability woes: Report

NARCL, which started in July 2021 to buy 2 trillion rupees in bad loans, has bought 213.5 billion rupees of such loans as of July 17, according to a government statement to parliament

Rank loans, save money, seek advice: Strategies to get out of debt

Recovery agents cannot harass debtors and have to take consent before visiting them