Indian banking system reeled under fresh slippages of more than 2.3 lakh crore in FY1819. The write offs (including Technical) grossed more than 2 lakh crore while provisions towards NPA stood at nearly 2.6 lakh crore. Compare this with India’s fiscal deficit of 6.35 lakh crore! The comparison is worth…
RBI yesterday notified Yes Bank its disapproval for the current CEO, Mr. Rana Kapoor, to continue for another 3 years. Instead it has curtailed his continuity to this position to 31st Jan 2019, a little more than 4 months from now. Keep in mind that the Board of Governors for…
In an interview with Bloomberg, SBI Chairman Rajnish Kumar had said ‘It is important that we give a message that if potential bidders are trying to suppress the values, then banks are not going to accept it’, obviously referring to the resolution process effectiveness being pursued against debtors under Bankruptcy…
or Haircut, if I may say! Not sure? Then just have a look at the following data from RBI data. From as high as 22% in FY13, the recovery success rate has been seeing steep fall ending up at a notch below 10% by FY17 (9.8%). That means if there…
While many eyebrows are being raised on the obscene value of the fraud detected at PNB (~11000 cr INR/ 1.8 BN USD); it holds no surprise if one understands the psyche of Indian banks, primarily the PSUs. Vijay Mallya did the same thing, brazenly taking the banks for a ride…
Draft FRDI (Financial Resolution & Deposit Insurance) Bill 2017 is expected to provide a comprehensive framework to deal with bankruptcy situations in financial sector entities e.g. banks, NBFCs etc. The bill was approved by cabinet for introduction in the Parliament in June 2017. The bill is creating a lot of…
The Indian banking NPA woes refuses to go and despite new bankruptcy & insolvency laws, few seems to be convinced that there is a resolution in early sight. We have outlined earlier that the basic fundamental challenge we have is lack of economic growth. With a few industries (aka Telecom) reeling under…
