[Bad loans now constitute 11 per cent of the gross advances of PSU banks, while total NPAs, including those for public and private banks, were Rs 697,409 crore as of December 2016, according to figures compiled by Care Ratings for The Indian Express. Gross non-performing assets (NPAs), or bad loans, of state owned banks surged 56.4 per cent to Rs 614,872 crore during the 12-month period ended December 2016, and appear set to rise further in the next two quarters with many units, especially in the small and medium sectors, struggling to repay after being hit by the government’s decision to withdraw currency notes of Rs 500 and Rs 1,000 denomination.]
http://indianexpress.com/article/business/banking-and-finance/bad-loan-crisis-continues-56-4-per-cent-rise-in-npas-of-banks-rbi-4533685/ Bad loan crisis continues: 56.4 per cent rise in NPAs of banks Bad loans have now shot up by 135 per cent from Rs 261,843 crore in the last two years, despite the Reserve Bank of India announcing a host of restructuring schemes. Written by George Mathew | Mumbai | Updated: February 20, 2017 12:04 pm ***Bad loans now constitute 11 per cent of the gross advances of PSU banks, while total NPAs, including those for public and private banks, were Rs 697,409 crore as of December 2016, according to figures compiled by Care Ratings for The Indian Express.*** [Emphasis added.] ***Gross non-performing assets (NPAs), or bad loans, of state owned banks surged 56.4 per cent to Rs 614,872 crore during the 12-month period ended December 2016, and appear set to rise further in the next two quarters with many units, especially in the small and medium sectors, struggling to repay after being hit by the government’s decision to withdraw currency notes of Rs 500 and Rs 1,000 denomination.*** [Emphasis added.] WATCH | 56.4% Rise In Bad Loans Or Non-Performing Assets Of State Owned Banks 56.4% Rise In Bad Loans Or Non-Performing Assets Of State Owned Banks Bad loans have now shot up by 135 per cent from Rs 261,843 crore in the last two years, despite the Reserve Bank of India announcing a host of restructuring schemes. Bad loans now constitute 11 per cent of the gross advances of PSU banks, while total NPAs, including those for public and private banks, were Rs 697,409 crore as of December 2016, according to figures compiled by Care Ratings for The Indian Express. At least five banks have reported gross NPA ratios (ratio of bad loans to total loans) of over 15 per cent. Indian Overseas Bank’s gross NPA ratio is 22.42 per cent, which means Rs 22.42 out of every Rs 100 lent by the bank is classified as a bad loan. UCO Bank has posted an NPA ratio of 17.18 per cent, United Bank of India 15.98 per cent, IDBI Bank 15.16 per cent and Bank of Maharashtra 15.08 per cent, the Care analysis reveals. “The government needs to chalk out a plan for such banks. [Chart showing yearwise gross NPAs of 24 PSU banks - Dec. 2012-Dec. 2016] Obviously, schemes to tackle stressed assets haven’t worked well. Many banks will miss the RBI deadline to clean up balance sheets by March 2017, with demonetisation now adding to the pressure,” a former chairman of a nationalised bank said. Efforts of banks to recover bad loans were hamstrung by the redeployment of many staffers to branches in November and December after high-value notes were scrapped. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at https://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
