Investment Bank supporting leading medium and large corporates in fund raising through Banks, NBFC, PE funds. Also provide NPA resolution for stressed cases.
Wednesday, 31 August 2016
Increasing bad loans, fall in their recovery a problem for banks: RBI
The problem of bad loans for the Banking sector is significant when one looks at the
increase in stressed assets and the falling recovery of bad loans, said a
senior Reserve Bank Of India (RBI)
official on Tuesday.
that does not have a strong risk management system will have a highly
susceptible credit portfolio, said RBI Deputy Governor N.S.Vishwanathan at the
inauguration of the national conference on 'Risk Management-Key to Asset
Quality,' organised by The Associated Chambers of Commerce and Industry of India (Assocham).
"The total stressed assets of public sector banks have risen to 14.5 per
cent as at the end March 2016. They still contain some element of restructured
assets indicating potential for some more pain, albeit of lesser intensity.
the annual recovery in NPAs (non-performing assets) falling from 20 per cent in
2013-14 to nine per cent in 2015-16, the problem assumes greater
significance," he added.
to Vishwanathan, there may not be big addition to NPA in the coming period as
it would moderate but the provisioning needs as the NPAs age will put pressure
on a bank's profit and loss account.
management is not static and evolves over a period of time, he said risk
management sophistication grows with the growth in the complexities of a bank's
said the government has notified the amendment to the Debt Recovery Tribunal
Act and SARFAESI Act which will speed up the debt recovery process, while the
RBI has issued guidelines to make large borrowers to go to capital market for
part of their funding needs