Contact Your Financial Adviser Money Making MC
25Th Aug 2016
 |
RBI deputy Governor S.S.
Mundra(The Total Investment &
Insurance Solutions)
|
The gross non-performing assets (NPAs), or
bad loans, of India's state-run banks, measured as a percentage of their
advances, have ballooned from 5.4 per cent as on March 2015 to 11.3 per cent 15
months later, as per latest data available with the central bank.
In contrast, such bad loans of private banks
and foreign entities in the industry, rose in a relatively less dramatic manner
-- from 2.2 per cent to 2.8 per cent for the former and from 3.2 per cent to
3.7 per cent for the latter. The Total
Investment & Insurance Solutions
The data was available with Reserve Bank of
India Deputy Governor S.S. Mundra at a conference on banking sector reforms
here. The Total Investment &
Insurance Solutions
Taking into consideration the loans that have
been restructured -- that is a recast of the modalities including repayment and
interest -- the total stressed advances of state-run banks stood at a whopping
15.4 per cent of their gross advances as in June this year.
As per the presentation by the Deputy
Governor, the state-run banks also had dismal bottomlines. As against a net profit
of Rs 30,869 crore in March 2015, they incured a net loss of Rs 20,006 crore a
year later.
During this period, the net pofit of private
banks registered a growth from Rs 35,832 crore to Rs 39,672 crore. While
foreign banks also made a total net profit, it came down from Rs 12,764 crore
to Rs 12,619 crore.
Mundra said that post initiation of the
banking reforms in 1991, the banks' balance sheets were much stronger and NPAs
had come drom from the peak of around 12 per cent to slightly over 2 per cent
by the year 2008.
But after that two developments happened --
global financial crisis and introduction of the PPP (public-private
partnership) model in infrastructure building, he said. The Total Investment & Insurance Solutions
"Banks were enthusiastic, rather major
partners, in the PPP model, supported by accommodative fiscal and easy monetary
policies, but it got plagued," he added.
Weak governance, lax underwriting, high
corproate leverage and policy logjams led to the current scene of stressed
assets in the banking sector, Mundra said.The Total Investment & Insurance Solutions
No comments:
Post a Comment