Gross NPAs of banks decline to 6.9% at end-September, the lowest in 5 years. Write-offs the predominant recourse taken by banks, says RBI.
Gross NPAs of banks may rise from 6.9% in September 2021 to 8.1% by September 2022 under baseline scenario and to 9.5% under severe stress scenario, RBI’s Financial Stability Report said.
RBI says financial health of RBL Bank is stable and it is well-capitalised; several brokerages downgrade the stock quoting uncertainty.
RBL Bank interim CEO Rajeev Ahuja says recent developments have nothing to do with financials; trade union body wants government to consider merging it with a state-owned bank.
Ministry of corporate affairs proposes NCLT to have only 30 days to either approve or reject a resolution plan; other changes relate to liquidation, look-back period, avoidance transactions and wrongful trading.
RBI puts growth as its overarching priority but inflation is hurting. A new balancing between growth and inflation may be on the cards next year.
Bank of Maharashtra has also cut interest rate on car loans to 6.80%; becomes first bank to lower rates after RBI maintained status quo in key policy rates for ninth consecutive time.
RBI has left untouched the key lending rate while raising concerns over inflation and the new Omicron variant. "The overarching priority of RBI at this stage is revival of growth,” Governor Shaktikanta Das said.
RBI allows promoters to own up to 26% stake in private banks; no stance taken yet on allowing corporates into banking.
RBI has directed banks not to upgrade NPAs as ‘standard’ asset after getting only interest payment from the borrower.
Bank of Baroda CEO Sanjiv Chadha admits home loan growth was hit by takeovers; expects bank to recover Rs 4,000 cr of bad loans in Q3.
RBI drops profitability from list of criteria for putting banks under prompt corrective framework while retaining other three key parameters.
For borrowers with bank exposure of less than Rs 5 crore, there will be no restriction on the opening of current accounts; RBI eased the rules after getting feedback.
A fall in bad loans, better recoveries and stronger credit growth is how MD & CEO Mallikarjuna Rao is forecasting the next few quarters would be for Punjab National Bank.
Canara Bank Q2 net up 200% at Rs 1,333 crore amid high growth in non-interest income and lower provisioning for bad loans; CEO Prabhakar expects recoveries to outpace fresh NPAs.
