Page 4 - Bad Loans

Centre unlikely to infuse any capital into the PSBs in FY23: Report

Between FY16 and FY21, the government infused Rs 3.3 trillion into PSBs helping the banks in improving their balance sheets and the capital-to-risk-weighted assets ratio (CRAR)

South Indian Bank posts profit in Q2 at Rs 223 cr; asset quality improves

South Indian Bank (SIB) on Thursday reported a net profit of Rs 223.10 crore for the quarter ended September 2022 as provisions for bad loans came down significantly. The lender had posted a net loss of Rs 187.06 crore in the same quarter a year ago. Total income during July-September 2022-23 was up 10.6 per cent at Rs 1,995.24 crore as against Rs 1,803.76 crore in the same quarter a year ago, SIB said in a regulatory filing. The interest income grew to Rs 1,740.14 crore from Rs 1,646.59 crore. Asset quality of the lender improved as gross non-performing assets (NPAs) fell to 5.67 per cent of gross advances as of end-September 2022 from 6.65 per cent by end of September 2021. In value terms, gross NPAs stood at Rs 3,856.13 crore as against Rs 3,879.60 crore. Net NPAs (bad loans) were trimmed to 2.51 per cent (Rs 1,647.13 crore) as against 3.85 per cent (Rs 2,178.49 crore). Provisions for bad loans and contingencies fell down by more than 57 per cent to Rs 179.29 crore during th

Indian banks may see bad loans falling to decade low of 4% by end of FY24

Indian banks are likely to see a 90 basis points fall in gross non-performing assets (NPAs) to 5% in this fiscal year to March and further improve to 4% by end of March 2024, rating agency Crisil said

YES Bank to sell all its NPAs to JC Flowers ARC by December: Report

YES Bank's gross NPAs stood at 13.4 per cent at the end of June. The gross figures stood at Rs 27,747 crore. In June 2021, the NPAs stood at 15.6 per cent

Bad loan recovery process can get worse

Apart from creating a distinction between financial creditors and operational creditors, the latest Supreme Court judgment also leads to the creation of a new category of default - temporary default

RBI unlikely to accept NBFCs' requests for bad-loan exemptions: Report

Under the new norms, shadow banks will have to recognise bad loans on a daily basis, rather than monthly, as some now do

SBI to sell Anamika Conductors' bad loan account to recover Rs 102 cr

Country's largest lender SBI will sell non-performing loan account of Anamika Conductors through e-bidding in late September to recover dues of Rs 102 crore. Anamika Conductors has an outstanding of Rs 102.30 crore. SBI has put the reserve price for the e-auction, scheduled to be held on September 28, 2022, at Rs 22.13 crore. SBI said in terms of its policy on transfer of stressed loan exposures, it is placing the loan account of Anamika Conductors for transfer to eligible ARCs/banks/NBFC/FIs. The bank, however, said it reserves the right not to go ahead with the proposed transaction or modify any terms and conditions at any stage, without assigning any reason. Founded in 1988, Anamika Conductors is a Jaipur-based company engaged in manufacturing of aluminium conductor wire, aluminium alloy conductors and power cables. It also has presence in wind energy production with mills situated in Rajasthan and Maharashtra.

China's biggest banks hit by margin squeeze amid bad loan pressure

China's $52 trillion banking industry is facing an increasingly difficult year, with its largest lenders cutting loan rates while bad debt is piling up amid a property crisis

IDBI Bank's CEO says the lender can recover $2.4 billion in bad loans

India is considering selling at least 51% of the $5 billion bank, people familiar with the matter have said

NARCL to buy loans of five distressed companies, lenders agreement awaited

In July, NARCL had proposed to take distressed assets of 17 firms worth Rs 93,249 crore including included five firms of the Future Group

Banks took a haircut of 69 per cent while resolving IBC cases: Report

Haircuts are defined as the losses incurred by the creditors (banks in this case) on resolving the bad debts or stressed assets

ESAF Small Finance Bank Q1 profit jumps to Rs 106 cr amid fall in bad loans

ESAF Small Finance Bank on Friday said it posted a profit of Rs 106 crore for the first quarter ended June helped by a rise in interest income and a decline in bad loans

PFC Q1 profit up marginally at Rs 4,580 cr; income falls 2% to Rs 18,544 cr

The board in its meeting held on Friday approved an interim dividend of Rs 2.25 per equity share of face value of Rs 10 each for 2022-23.

Lower bad loans push PSU banks' profitability in June quarter: Analysis

Cumulatively, all the 12 public sector banks reported a profit of about Rs 15,306 crore in the three months ended June, registering an annual growth of 9.2 per cent.

Banks wrote off Rs 10 trillion in last five financial years: Centre

A recent Parliament reply disclosed that scheduled commercial banks have written off loans worth about Rs 10 lakh crore in the last five financial years

PSBs recover Rs 6.42 trn NPAs, written off loans since from FY15 to FY22

From FY16 to FY21, the central government has infused Rs 3.36 trillion of capital in PSBs, while banks have raised an additional Rs 2.99 trillion from the markets

Union Bank expects to recover Rs 15,000 crore from bad loans this fiscal

Union Bank of India expects to recover Rs 15,000 crore from bad loan accounts during the current fiscal year, and a bulk of this would come from accounts undergoing insolvency resolution process. It expects to make recoveries worth Rs 10,000 crore from accounts under the National Company Law Tribunal (NCLT) for resolution of bad loans in 2022-23, the bank said during an analysts conference call post June 2022-23 quarter earnings announcement last week. Replying to a question on recovery guidance for full year 2022-23, Managing Director and Chief Executive Officer A Manimekhalai said: "The recovery will be around Rs 15,000 crore." Besides, the public sector lender is also likely to shift a few accounts under the newly incorporated debt resolution company NARCL. A total of 44 bad loans have already been approved by the NCLT with loan exposure of Rs 4,842 crore. Additional 55 dud accounts cleared by the Committee of Creditors (CoCs) are awaiting approval of the tribunal. The 55 NPA .

China banks rush to raise debt as slowdown hikes potential bad loans

A record amount of fresh money has come from financial markets in China, with banks selling 29% more bonds in the first half of the year compared to last year

Union Bank of India Q1 net rises 32% at Rs 1,558 cr on lower bad loans

Union Bank of India on Tuesday reported a 32 per cent rise in standalone net profit to Rs 1,558.46 crore for the quarter ended June 2022, helped by a fall in bad loans

Karur Vysya Bank Q1 net doubles to Rs 229 cr, interest income up 17%

Operating profit for up 15% YoY, major improvement seen in bad loans