The failure of the banking sector may have an adverse impact on other sectors. Non-performing assets are one of the major concerns for banks in India. NPAs reflect the performance of banks.
Low provisioning for security receipts against stressed assets could hurt banks BL Research Bureau Banks, which are already groaning under the burden of non-performing assets NPAs imposed on them by the steel, power, infrastructure and manufacturing industries, may be in for yet more bad news.
Strikingly, banks have made an average provisioning of just per cent against these SRs. Given that the recovery rate on SRs so far has been just per cent, banks may be in for more pain ahead.
Banks stop recording the assets sold to ARCs as bad loans in their books, and do not make provisions for them.
Instead, they record the SR portion as investments, which are rated every year by rating agencies. Based on the amount expected to be recovered on the loans, banks need to do a mark-to-market provisioning every year.
The level of provisioning on SRs see table: Provisionally short varies across banks, from 2 to 50 per cent. Poor recovery But an Assocham-Crisil report notes that the recovery rate till now has been poor, at per cent. In Augustthe RBI mandated 15 per cent upfront payment, which led to a more realistic pricing of assets and infused hope that the recovery rate would improve.Nov 20, · If there is stress in individual accounts, instead of making that account a NPA, it would be better if we restructure and.
continue to provide support, Prashant Kumar, CFO, SBI. New York, Oct 29 Indian banks are now "on top of the situation" on the problem of the non-performing assets (NPA), State Bank of India Chairman Rajnish Kumar said. national pension system(nps) National Pension System (NPS) is a defined contribution pension system introduced by the Government of India as a part of Pension Sector reforms, with an objective to provide social security to all citizens of India.
NON-PERFORMING ASSETS: A STUDY OF STATE BANK OF INDIA barnweddingvt.comn barnweddingvt.comnakrishnan of banks the NPA need to be reduced and controlled. In this paper, an effort has been made to evaluate the non-performanceassets of the SBI since , NPAs.
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Centre, Judiciary, Banks Also Responsible for NPAs: SBI Chief Rajnish Kumar According to the SBI Chief Rajnish Kumar non-performing assets (NPA) for public sector banks were higher due to government-sponsored schemes and targeted lending.