Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

In a shock to the authorities, <keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>’s loans worth Rs 11,700 crore have been locked up as NPAs because of 1,164 defaulters having willfully decided not to repay. 
 
These 1,164 cases of wilful default have been identified, and the total outstanding loan amount comes out to be Rs 11,705 crore, said the data collated by the Finance Ministry. 
 
The bank itself has declared Kingfisher Airlines and its guarantors UB Holdings and Vijay Mallya as wilful defaulters in November, which owes it Rs 1,600 crore. 
 
A total of 13 FIRs have been lodged against wilful defaulters with loans of Rs 13.10 crore. 
 
At the end of the December quarter, the gross NPAs of SBI were calculated to Rs 72,791.73 crore, while for the same period in last fiscal, the amount was Rs 61,991.45 crore. 
 
It has led to a deep fall in the profitability of the bank, given that the consolidated profit sank 67% to Rs 1,259.49 crore for the quarter. SBI Chairman <keyword id="6379603" type="PERSON" weightage="100" keywordseo="Arundhati-Bhattacharya">Arundhati Bhattacharya</keyword> had said that bad loans are expected to further increase in the coming quarter, which may hit its profitability even more. 
 
<a href="http://www.dsource.in/resource/history-graphic-design-india/recent-times/images/800/24.jpg">Image source</a>

SBI's Rs 11,700 crore locked as NPAs with 1164 wilful defaulters

New Delhi, Dec 14 () Public sector lender Punjab National Bank (PNB) under-reported its non-performing assets by Rs 2,617 crore for the fiscal year 2018-19, as per RBI's risk-assessment report.
 In a regulatory filing on Saturday, PNB said the divergence in gross non-performing assets (NPAs) assessed by the central bank stood at Rs 2,617 crore in FY19.
 The divergence assessed by the RBI in net NPAs was also Rs 2,617 crore for the fiscal.
 Also, the divergence in provisioning for bad loans in FY19 was to the tune of Rs 2,091 crore.
 Consequently, based on the divergence assessed by RBI in provisioning for bad loans, PNB said it would have reported a net loss of Rs 11,335.90 crore for FY19 as opposed to a net loss of Rs 9,975.49 crore.
 The bank said it reported gross NPAs of Rs 78,472.70 crore, while as per RBI's assessment the figure was Rs 81,089.70 crore.
 Similarly, it reported net NPAs of Rs 30,037.66 crore, compared to RBI's assessment of Rs 32,654.66 crore.
 Provisions for NPAs made by the bank in FY19 stood at Rs 48151.15 crore but it needed to provide Rs 50,242.15 crore.
 Recently, market regulator Sebi made it mandatory for listed banks to disclose bad loan divergence within a day of receiving the risk assessment report from the RBI. KKS ABM

PNB under-reported bad loans by Rs 2,617 cr in FY19: RBI report

New Delhi, Jan 28 () Central Bank of India on Tuesday reported a consolidated net profit of Rs 164.28 crore for December quarter 2019-20.
The state-owned bank had posted a net loss of Rs 681.16 crore for October-December period of the previous fiscal.
Total income rose to Rs 7,307.98 crore during the quarter under review from Rs 6,356 crore in the year-ago period, the lender said in a regulatory filing.
The bank's provisioning for non-performing assets (NPAs) fell to Rs 379.79 crore during the quarter as against Rs 1,996.50 crore parked aside for the year-ago same period. 
The overall provisions and contingencies were at Rs 1,249.61 crore, down from Rs 1,812.67 crore.
On standalone basis, the bank reported a profit of Rs 155.32 crore in the third quarter. It registered a loss of Rs 718.23 crore for the year-ago period. Income increased to Rs 7,278.29 crore from Rs 6,329.17 crore.
Gross non-performing assets (NPAs) were high at 19.99 per cent of the gross advances as at December 31, 2019, compared with 20.64 per cent by the end of December 2018.
Net NPAs wert at 9.26 per cent as compared to 10.32 per cent earlier.
In absolute numbers, gross NPAs stood at Rs 33,258.59 crore by the end of December quarter 2019-20, as against Rs 35,332.68 crore by the end of the same period a year ago. 
Net NPAs stood at Rs 13,568.05 crore, down from Rs 15,605.07 crore by the end of December 2018.
Disclosing the bank's position on the NPA divergence for 2018-19, as assessed by the Reserve Bank, Central Bank said there was a gap of Rs 2,565 crore in gross bad loans.
The bank had reported gross NPAs of Rs 32,356.04 crore for 2018-19, while the RBI assessed it at Rs 34,921.04 crore.
Net NPAs were reported at Rs 11,333.24 crore, whereas the RBI assessed them at Rs 13,898.24 crore, leading to a divergence of Rs 2,565 crore.
The divergence in provisioning for 2018-19 stood at Rs 788 crore and hence the adjusted net loss for the year came in at Rs 6,429.48 crore.
The lender had reported a loss of Rs 5,641.48 crore in 2018-19.
The bank's stock closed 3.73 per cent down at Rs 19.35 on the BSE. KPM
 KPM ANU
ANU

Central Bank of India Q3 profit at Rs 164 cr, NPA provision comes down

Ahmedabad, Dec 24 () Gross NPAs of Gujarat banks have increased to Rs 43,290.18 crore, or 7.10 per cent of the outstanding, as of September 2019 compared to Rs 39,695 crore, or 6.55 per cent as of June this year, revealed the report of
State Level Bankers Committee (SLBC) released on Tuesday.
Gross NPAs in overall agricultural segment remained at 7.56 per cent of the outstanding amount, while those of the MSMEs were the highest at 8.02 per cent of outstanding, the report reveals.
Gross NPAs of non-priority sector remained at 7.51 per cent of outstanding.
Gross advances of the banks in the state of Gujarat are Rs 6,09,847 crore, and gross NPAs are Rs 43,290 crore, i.e., 7.10 per cent as of September, 2019, SLBC said.
Bank-wise data shows gross NPAs of nationalised banks remain at the highest at Rs 30,039.8 crore, or 15.28 per cent of total outstanding of Rs 196,557.10 crore, while that of private banks remain at 2.65 per cent of total outstanding of Rs 261,407 crore.
The report also highlighted new initiative launched by the state government through a notification dated October 24, 2019, relaxing licencing requirement for MSMEs for three years.
Under this, enterprises will only require to provide declaration of intent, based on which investor facilitation agency will issue an all-purpose acknowledgment certificate,
making setting up and obtaining finance for MSME a hassle-free process.
It urged banks to tweak its MSME policies whereby mere obtaining acknowledgement certificate as defined in the act would enable bank to extend finance.
The SLBC further said in its latest report that all unbanked tier IV rural centres in the state having between 10,000-19,999 population have been covered with banking
outlets either through brick and mortar or business correspondent model.
However, in terms of tier V centres, with villages having between 5,000-9,999 population, 160 centres are yet to get banking outlets, it said.
Also, in terms of performance of tribal districts of Dahod and Narmada under key financial inclusion parameters, banks in these districts require much more efforts to bring the performance at par with other districts, it said.
The report said a total Rs 425.96 crore was collected from farmers under the Pradhan Mantri Fasal Bima Yojana from 13.69 lakh farmers for Kharif 2019 season, which covers a total 25.45 lakh hectare area.
Out of a total 15.53 lakh farmers covered under the scheme who paid Rs 366.42 crore as premium, 12.07 lakh farmers were provided claims, with companies settling 2,334 crore as amount of claim, SLBC said.
In terms of Pradhan Mantri MUDRA Yojana, till November 30 this financial year, banks in the state disbursed a total of Rs 5651.09 crore as loan, given to a total 8.87 lakh beneficiaries.
Since its inception till September 30 this year, the total NPA in PMMY stood at Rs 442.63 crore of an outstanding of Rs 9,946.38 crore. KA PD RSY MKJ

Gujarat banks' gross NPAs rise to Rs 43,000 cr as of Sept 2019

New Delhi, Feb 6 () Public sector UCO Bank on Thursday said it has marginally narrowed its net loss to Rs 960.17 crore for the third quarter ended December, impacted by elevated levels of bad loans and provisioning. The Kolkata-based bank had reported a net loss of Rs 998.74 crore during the corresponding October-December period of the previous fiscal year. Total income during the third quarter of 2019-20, however, rose to Rs 4,514.21 crore as against Rs 3,585.56 crore earlier, UCO Bank said in a regulatory filing. The bank's bad loans ratio remained fairly high, though significantly lower than last year, at 19.45 per cent of the gross loans at the end of December 2019, from 27.39 per cent in the year ago period. Net NPAs halved to to 6.34 per cent from 12.48 per cent. In value terms, the gross NPAs stood at Rs 22,139.65 crore, down from Rs 31,121.79 crore at December-end, 2018. Net NPAs reduced to Rs 6,199.65 crore from Rs 11,755.61 crore. Provisions for bad loans were trimmed to Rs 1,645.51 crore for the quarter under review, from Rs 2,243.85 crore a year ago. However, the overall provisions and contingencies were higher for the quarter at Rs 2,170.69 crore, compared to Rs 1,399.56 crore. The non-performing loans provisioning coverage ratio stood at 83.71 per cent as on December 31, 2019, UCO Bank said. On divergence of bad loans during 2018-19, the lender said the net loss was adjusted to Rs 5,225.53 crore from the earlier reported Rs 4,321.09 crore. The gross NPAs as on March 31, 2019 as reported by the bank was Rs 29,888.33 crore, while the RBI assessed it at Rs 31,105.75 crore, leading to a divergence of Rs 1,217.42 crore. Net NPA divergence was of Rs 165.05 crore and the divergence on provisioning stood at Rs 1,390.17 crore. "The bank has made full provision against said divergence as at December 31, 2019," it added. Banks are mandated to report the divergence in case additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the reported profit before provisions and contingencies. For additional gross NPAs identified by RBI exceeding 15 per cent of the reported incremental gross NPAs, then too the banks are required to disclose divergence from prudential norms on income recognition, asset classification and provisioning. Stock of UCO Bank jumped 5.65 per cent to close at Rs 15.90 on BSE. KPM ABM

UCO Bank Q3 net loss narrows marginally to Rs 960 cr as bad loans remain elevated

New Delhi, Aug 17 (IANS) The Reserve Bank of India's (RBI) move on one-time loan restructuring will help soften the Covid-19 pandemic's impact on the asset quality of banks, CRISIL Ratings has said in a report earlier. According to the rating agency, without the loan restructuring support, gross non-performing assets (NPAs) could have touched a two-decade high of 11.5 % by the end of this fiscal, but will now likely print considerably below that level. The central bank has permitted relaxations for corporate loans under the June 2019 Prudential Framework on Resolution of Stressed Assets. These will benefit borrowers in most categories. Indeed, in a first, the restructuring option has been extended to retail borrowers as well, given that many of them may face challenges in servicing debt owing to salary cuts and job losses. Micro, small and medium enterprises (MSMEs), which have been substantially a ffected by the pandemic-led disruptions, have also got relief in the form of a three-month extension in the existing restructuring scheme, i.e. till Mar ch 31, 2021. The major beneficiaries, though, will be sub-Rs 500 crore corporate exposures and retail exposures, which were earlier expected to see the highest increase in NPAs in percentage terms. The debt at risk in these segments - or loans at risk of slipping into NPAs this fiscal unless restructured by banks - is a sizeable Rs 3 lakh crore, the report has said. Krishnan Sitaraman, Senior Director, CRISIL Ratings, said, "In the corporate segment, the situation today is different from the previous asset quality stress cycle, which started four years ago. Last time, the NPAs came primarily from bigger, chunkier accounts, whereas this time, an analysis of the top 100 exposures of our large, rated banks reveals that following a period of consolidation and deleveraging, these entities are likely to be better-positioned to withstand the current challenges. The key beneficiaries of the RBI's measures, though, will be small and mid-sized accounts, which are far less resilient in the current situation." CRISIL's analysis of the credit profile of banking sector exposures over Rs 25 crore bears this out. The study, covering 14,000 companies that constitute over 75% of the overall corporate portfolio of banks, shows that the debt at risk in corporate loan accounts with exposure less than Rs 500 crore is Rs 2 lakh crore. As a proportion of loans outstanding in this segment, it is 5 times that for larger corporate loan accounts with exposure more than Rs 500 crore. Further, the retail segment, which was considered a safe haven for banks in r ecent years, is witnessing significant pressure, given the stress being faced by salaried as well as self-employed borrowers. While home loans, the largest secured segment, would be less at risk owing to the psychological attachment of Indians to the homes they live in, and the priority they accord to repaying home loans, this does not hold for segments such as unsecured loans. The total debt at risk in the retail segment is estimated to be Rs 1 lakh crore. Asset quality in the MSME segment, which is among the most vulnerable, is already benefitting from the restructuring scheme that was in force till December 31, 2020, as well as measures such as the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme. With the proposed extension of the restructuring scheme, the reported gross NPA for the segment is, therefore, unlikely to see much of an increase vis-A-vis March 2020 levels. Subha Sri Narayanan, Director, CRISIL Ratings, said, "While the RBI measures will cushion the rise in NPAs, implementation is key, as are individual banks' policies on extending these relaxations to customers. For corporate loans, given the requirements of participation by lenders having 75% of exposure by value and 60% by number, and independent credit assessment by a credit rating agency, as well as the stringent timelines for invocation and implementation, we are likely to see banks being selective in extending restructuring. On the retail side, banks could follow different paths, with the well-capitalised ones choosing to recognise more of the stressed loans as NPAs rather than restructuring these." Factors such as prescribed eligibility criteria, additional provisioning requirements, and capping of restructuring tenures are expected to play a role in limiting the extent of restructured assets. Nevertheless, slippages to NPA in small and mid-size corporate loan accounts this fiscal should be well be low what was envisaged earlier. --IANS sn/ptr

Loan restructuring to stem runaway rise in NPAs this fiscal

New Delhi, Nov 19 () Central Bank of India has reported an increased net loss of Rs 6,430.48 crore for 2018-19 due to NPA divergence after assessment of higher bad loans by the Reserve Bank.
 The net NPA divergence -- the difference between the NPAs reported by the bank and that assessed by the RBI -- was at Rs 2,565 crore for 2018-19.
 Central Bank of India had reported a net loss of Rs 5,641.48 crore in 2018-19 earlier.
 "The adjusted (notional) net profit after tax for the year ended March 31, 2019 after taking into account the divergence in provisioning is (-) Rs 6,430.48 crore," the bank said in a regulatory filing.
 Banks are required to report divergences in their asset classification and provisioning as per Sebi guidelines issued on October 31, 2019.
 The bank had reported Rs 11,333.24 crore net NPAs during the year while the RBI assessed it at Rs 13,898.24 crore, leaving a gap of Rs 2,565 crore.
 The divergence in provisioning also increased by Rs 788 crore for the fiscal ended March 2019.
 Market regulator Sebi has put in place tighter disclosure norms, directing all listed banks to disclose any divergence in bad loan provisioning within 24 hours of receiving RBI's risk assessment report, rather than waiting to publish the details in their annual financial statements.
 Banks, including Indian Bank, Union Bank of India, Bank of India, Indian Overseas Bank and Lakshmi Vilas Bank, have already reported their NPA divergences for the last fiscal.
 The disclosures need to be made in case the banks' additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies, and if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs. KPM MR

Central Bank of India reports higher Rs 6,430cr loss for FY19 due to NPA divergence

Mumbai, RBI Governor <keyword id="6359111" type="General" weightage="20" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> on Monday said the central bank is "not comfortable" with the gross non-performing assets ratio of 8.7 per cent in urban cooperative banks (UCBs) and asked them to work towards improving the same. Addressing directors of UCBs in the financial capital at an RBI-organised conference, Das urged that such lenders should improve the governance standards, avoid related-party transactions and focus on credit risks, among others. It can be noted that the UCB sector has been fraught with multiple challenges and also witnessed difficult times in the recent past, like the implosion of the city-headquartered Punjab and Maharashtra Bank. Das reminded the directors of the UCBs that banks run on depositors and added that protection of the hard-earned money pooled in from the middle class, poor and retirees is far more sacred than going to a temple or a gurdwara. While the overall picture at an aggregate level looks nice, the situation on GNPAs and capital adequacy is "not at all satisfactory", Das said. He said the overall GNPAs have improved to 8.7 per cent, which is "not a good number. It is not a comfortable number even at an aggregate level". Scheduled commercial banks' GNPAs stood at a decadal best level of 3.9 per cent in March 2023 and are widely estimated to improve further. To manage the scourge of <keyword id="127693" type="General" weightage="20" keywordseo="npas" source="Orion">NPAs</keyword> better, Das suggested that there should be a focus on credit risk management with better underwriting. He said the RBI has come across instances of conflicts of interest or related party transactions, which need to be avoided. Similarly, there have been instances of many of the top defaulters being individuals or businesses having the ability to pay, Das said. The top 20 defaulters account for over 60 per cent of the loan overdue, and focusing on this segment can help improve the overall NPAs, he added. On the capital adequacy front, he noted that there has been an improvement in the ratios to 16.6 per cent at the end of FY23 from 15.5 per cent a year ago. Making it clear that he wants to share the RBI's concerns with the lenders, Das exhorted the UCBs to focus on the quality of governance by paying attention to compliance, risk management and internal audit. He said the RBI has come across instances where there is only "paper compliance" and no compliance is observed when an on-field inspection takes place, Das said, adding that the internal audit function also requires focus. The governor asked bank management to present a risk analysis report to the board on a quarterly basis, rather than making it into an annual effort. It is also necessary for the directors - who are elected and not appointed based on their skill sets, unlike the SCBs - to understand the financial sector, credit risk, banking, information technology and risk management, Das said. The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> has prescribed a board of management to help the elected board members with professional help in running a bank, and the same should not be seen as an impediment, he added. Stressing that the board discussions should be free and fair, Das said it is important to have any dominance of one or two persons in the decision-making. "There should be free, frank and democratic discussions. Board members should be encouraged to ask whatever questions they have on their mind," he said. Das also expressed the RBI's discomfort with board committees like those handling important functions, such as audit and risk not meeting regularly, stating that it has come across instances where such meetings are not held for months or even multiple years. He also asked UCBs to monitor asset-liability mismatches, follow transparent accounting practices and recruit people based on requirements and ability to spend. On the technology front, he said the RBI has found that the quality of the core banking solution is not at all satisfactory in some banks, and the treasury operations are not getting reflected in the CBS. Going ahead, the UCB segment will be facing competition from tech-savvy entities like digital lenders, fintechs, non-bank lenders and micro-lenders, and hence, need to focus more on technology, Das said. The governor said the UCB sector - built to serve as the neighbourhood bank - is "doing well" from an overall perspective, and also made it clear that the RBI is fine with some of the entities in the sector growing big.

Not comfortable with NPAs in urban co-op banks says RBI, asks lenders to focus on governance

New Delhi, Feb 10 () State-owned Indian Overseas Bank (IOB) has reported widening of its net loss to Rs 6,075.49 crore during the third quarter ended December 2019, owing to higher provisioning for bad loan. The bank had registered a net loss of Rs 346.02 crore during the corresponding October-December period of 2018-19. Its total income during the December 2019 quarter also fell to Rs 5,197.94 crore from Rs 5,688.59 crore in the year-ago quarter, IOB said in a regulatory filing. Provisioning for bad loans jumped to Rs 6,663.94 crore, compared with Rs 2,075.28 crore a year ago. The bank's gross non-performing assets (NPAs), however, dropped to 17.12 per cent of the gross loans at the end of December 2019, from 23.76 per cent a year ago. Net NPAs fell to 5.81 per cent from 13.56 per cent. In value terms, the gross NPAs were valued at Rs 23,733.86 crore from Rs 35,786.57 crore. Net NPAs were Rs 7,087.09 crore from Rs 17,987.92 crore. On NPA divergence for 2018-19, the bank said there was a gap of Rs 358 crore in gross bad loans, as the bank had reported it to be Rs 33,398 crore while the Reserve Bank of India assessed it to be at Rs 33,756 crore . Net NPAs divergence was of Rs 358 crore and the divergence for provision came in at Rs 2,208 crore. Thus, overall loss during 2018-19 was adjusted to Rs 5,999.90 crore from the earlier reported Rs 3,737.90 crore. The provision coverage ratio improved to 86.20 per cent, IOB said. Shares of IOB closed at Rs 9.92 apiece on the BSE, up 1.95 per cent. KPM HRS

You Searched For "NPAs" and got 9 results

SBI's Rs 11,700 crore locked as NPAs with 1164 wilful defaulters

BI India Bureau

PNB under-reported bad loans by Rs 2,617 cr in FY19: RBI report

PTI

Central Bank of India Q3 profit at Rs 164 cr, NPA provision comes down

PTI

Gujarat banks' gross NPAs rise to Rs 43,000 cr as of Sept 2019

PTI

UCO Bank Q3 net loss narrows marginally to Rs 960 cr as bad loans remain elevated

PTI

Loan restructuring to stem runaway rise in NPAs this fiscal

IANS

Central Bank of India reports higher Rs 6,430cr loss for FY19 due to NPA divergence

PTI

Not comfortable with NPAs in urban co-op banks says RBI, asks lenders to focus on governance

PTI

Indian Overseas Bank Q3 net loss widens to Rs 6,075 cr on higher bad loan provisioning

PTI

Popular Keywords

Buying Guides