Page 2 - Bad Loans

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

LIC Housing Finance to aggressively use OTS, ARC for loan recoveries

The company had written off Rs 544.71 crore during FY23, in comparison to just Rs 23.03 crore written off in the previous year

Dhanlaxmi Bank Q1 net profit at Rs 28 cr due to decline in bad loans

Private sector Dhanlaxmi Bank on Monday recorded a net profit of Rs 28.30 crore in the April-June quarter, mainly due to a decline in bad loans. The lender had posted a net of Rs 26.43 crore in the year-ago period. The total income in the first quarter of the current fiscal rose to Rs 5,857 crore against Rs 3,797 crore, UCO Bank said in a regulatory filing. The lender's interest income also increased to Rs 341.40 crore from Rs 236.82 crore in the same quarter a year ago. On the asset quality side, the bank witnessed improvement with the gross non-performing assets (NPAs) easing to 5.21 per cent of the gross advances by June 2023 from 6.35 per cent a year ago. The net NPA too declined to 1.09 per cent against 2.69 per cent in the year-ago period. However, provisions for bad loans increased to Rs 27.64 crore as compared to Rs 21.41 crore in FY23. Provision Coverage Ratio of the bank stood at 90.79 per cent as of June 2023. The capital adequacy ratio of the bank improved to 12.57

Banks recovered bad loans worth Rs 10.16 trillion in 9 years: FinMin

Wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds: Bhagwat Karad

Karur Vysya Bank Q1 results: Net profit rises 57% to Rs 359 crore

Private sector lender Karur Vysya Bank on Monday reported 57 per cent rise in net profit at Rs 359 crore for June quarter due to decline in bad loans and increase in interest income. The Tamil Nadu-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 2,216 crore from Rs 1,673 crore in FY23, Karur Vysya Bank said in a regulatory filing. Interest earned by the bank grew to Rs 1,883 crore over Rs 1,474 crore in June quarter a year ago. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 1.99 per cent of gross advances by the end of June 2023, from 5.28 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 0.59 per cent as against 1.93 per cent a year ago. However, Capital Adequacy Ratio of the bank declined 17.67 per cent from 18.98 per cent in the same quarter of FY23.

Central Bank Q1 profit surges 78% to Rs 418 cr due to decline in bad loans

State-owned Central Bank of India on Monday reported a 78 per cent rise in net profit at Rs 418 crore for the June quarter due to decline in bad loans and increase in interest income. The Mumbai-based lender had posted a net profit of Rs 235 crore in the year-ago period. Total income during the quarter under review increased to Rs 8,184 crore from Rs 6,357 crore in FY23, Central Bank of India said in a regulatory filing. Interest earned by the bank grew to Rs 7,225 crore over Rs 5,527 crore in the June quarter a year ago. Net Interest Income of the bank increased by 48 per cent to Rs 3,176 crore in Q1 FY24, it said. The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 4.95 per cent of gross advances by the end of June 2023, from 14.90 per cent as of June 2022. Similarly, net NPAs or bad loans eased to 1.75 per cent as against 3.93 per cent a year ago. Net Interest Margin (NIM) of the bank improved to 3.62 per cent, registering a growth of

PSBs stepping up recovery of bad loans to meet FinMin's 40% target: Report

In the five years that ended on March 31, 2022, the PSBs were able to recover only 14 per cent, Rs 1.03 trillion, out of the total written-off loans of Rs 7.34 trillion

Federal Bank Q1 profit up 29% at Rs 854 cr on back of decline in bad loans

Federal Bank on Thursday reported 29 per cent rise in net profit at Rs 854 crore for June quarter 2023-24 helped by decline in bad loans. The South-based private sector lender had posted a net profit of Rs 661 crore for the year-ago period. Total income during the quarter under review increased to Rs 5,757 crore from Rs 4,081 crore in the year-ago period, Federal Bank said in a regulatory filing. Interest earned by the bank increased to Rs 5,025 crore from Rs 3,629 crore in the same period a year ago. The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.38 per cent of gross advances by the end of June 2023, from 2.69 per cent as of June 2022. Net NPAs or bad loans too came down to 0.69 per cent as against 0.94 per cent a year ago. However, Capital Adequacy Ratio of the bank decreased to 14.28 per cent from 14.57 per cent in the same quarter a year ago.

Private banks more aggressive in writing off bad loans than public banks

The ratio of write-offs to gross non-performing assets (GNPAs) in private banks was 47.9 per cent, much higher than 22.2 per cent in public banks

One in every 10 retail borrowers missing monthly payments: RBI report

According to RBI's financial stability report, the total of SMA-0, SMA-1 and SMA-2 in the retail advances in the public sector banks was 9.4% as of March 31