Axis Bank says stressed asset pool back to 'normal' levelsAxis Bank on January 22 reported lower-than-expected net profit for the October-December quarter on the back of higher provisioning. The private lender said that it may continue to set aside more against bad loans going ahead, as slippages remain high. … [Read more...] about Banking wrap: RBI Governor calls for structural, fiscal measures; ICICI Bank classifies Karvy as NPA
Nevertheless, the trend offers some insights to the state of the economy. There was a time when banks used to compete to grow their student loan portfolio, often running campaigns. What changed over the last few years? Of course, banks cut lending when demand slows or when bad loans from that particular segment begin to spike. In the case of education loans too, both aspects seem to have played a part. … [Read more...] about Why have Indian banks stopped lending to students?
This puts LIC, which usually had limited gross NPAs between 1.5 percent to 2 percent, in the same league as private lenders like Yes Bank, Axis Bank and ICICI Bank. These banks ended the first half of the current fiscal year with gross NPAs at 7.39 percent, 5.03 percent and 6.37 percent respectively. … [Read more...] about LIC reports NPAs worth Rs 30,000 crore in H1FY20; in same boat as YES Bank, Axis Bank and ICICI Bank: Report
Other than Karvy, ICICI Bank also classified a "South India-based industrial company" as non-performing as “servicing was regular but the refinancing undertaken by the bank in 2018, was assessed to be a restructuring. The company is backed by reputed promoters and investors,” Batra said. … [Read more...] about ICICI Bank classifies Karvy as NPA, slippages rise
Better risk managementThe government should also look at the loopholes in the risk-management systems in PSBs. State-run banks continue to have weak risk management tools and remain vulnerable to frauds. According to RBI data, there have been over 5,000 incidents of frauds, totaling close to Rs 96,000 crore, in public sector banks during H1 FY20.The RBI has initiated steps to ring-fence the banking system from fraudsters such as revising the rules for co-operative banks. But the government will have to bring in legislation to overhaul the governance structure of the co-operative banking sector more effectively. … [Read more...] about Budget 2020: What lies in store for state-run banks ravaged by bad debt?