Winning the NPA Battle: A Game Theory Perspective


The NPA issue with the Indian PSU banks have been hogging the limelight for some time and there seems to be no easy out. The recent NPA ordinance is said to have added more teeth to the regulator & the banks to crack whip on the large defaulters and have…

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The NPA Fiasco In A Lighter Vein!


Source: Created with toondoos.com This cartoon is property of Randomwalks and can not be republished/ reprinted without exclusive permission of Randomwalks.in

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The PSB debacle continues, more to get into PCA but expect no real solution


In one of our earlier article, we highlighted that nearly 75% PSB had breached the RBI PCA threshold on one or multiple criteria. It was based on Dec/ Q3 FY17 data. Has the situation improved or have gone worse with FY17 closure? Unfortunately, the initial prognosis do-not seem good. IDBI…

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Getting Over The NPA Hangover


The biggest crisis the banking ecosystem & primarily the public sector ones are facing today is NPA and it is primarily concentrated in some 10-20 key corporate accounts. Lot of noises and now even an ordinance has been pushed through to resolve it but no resolutions in sight. So what…

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Why the New Banking Regulation Ordinance May Fall Short?


The new amendments to the Banking Regulation Act-1949, seems to have caught everyone’s attention. Two reasons for the same, the burgeoning problem of NPA (especially the PSBs) and the hope that the new rules brings in (hope that it gives RBI strength to come down heavily on the defaulters). Is…

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Nearly 75% PSU banks have breached RBI PCA threshold!


RBI recently released the revised PCA framework (13th April 2017). An evaluation of all the PSU banks, including SBI, shows an alarming 16 of these banks who have breached the Risk Threshold status in one or more parameters. 8 of them are in 2nd level breach while 1 is in 3rd…

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Why Bad Bank Idea Is Not That Bad?


In one of our last article on bad banks, we had questioned the feasibility of bad bank in India and whether it can be as effective as it had been with Citi/ Bank of America or other global banks (e.g. Sweden & so on). But there is a counter view which…

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