Page 117 - Banking Sector
Banks must remain prudent about NPAs, says Pranab Mukherjee
President reminds bankers of their sacred duty to safeguard the money of those who have reposed trust in them
 "Banks must remain prudent about NPAs, says Pranab Mukherjee")
Have the banking sector's losses bottomed out?
While gross non-performing assets (NPAs) of the Indian banking system are expected to rise further in this financial year, the pace of deterioration is likely to moderate, as banks, prodded by the Reserve Bank of India (RBI), were aggressive in recognising bad loans in FY16.According to a new report by India Ratings and Research, fresh slippages to the non-performing loans category are likely to be a minimum of 1.5 per cent of total bank credit in the current financial year. In large part, these slippages will come from loans turning out in the Infrastructure and construction sectors, followed by the power sector. But, it is possible that actual slippages may turn out to be higher if companies find it difficult to service loans that were restructured in the earlier financial years. At the end of FY16, gross NPAs in the banking system stood at 7.2 per cent.Banks' credit costs are likely to remain high, compared to the previous financial year, although these are expected to moderate. Cre
 "Have the banking sector's losses bottomed out?")
Corporate leverage in decline, banking strain remains: DBS
Leveraged firms continue to hive off their non-core businesses or are in midst of a debt restructuring exercise with banks
 "Corporate leverage in decline, banking strain remains: DBS")