Search Result for : Npas

The Dollar Business Bureau Encouraged by The Banking Regulation (Amendment) Ordinance 2017, which was promulgated on May 4, the Reserve Bank of India (RBI) is likely to go in for resolution of bad loans amounting to around Rs.8 lakh crore by March 2019, a step that could help in bringing down the banks’ non-performing assets (NPAs) to satisfactory level as well as considerably improve their financial health, as revealed in a study by the industry body ASSOCHAM.  “So, it should be safe to assume that the NPAs mess would largely be resolved by the first quarter of the financial year 2019-20. This would be helped by a combination of several factors – turnaround in the economic cycle and some resolute steps by ...

The Dollar Business Bureau India according to Moody’s Investors Service is implementing extensive reforms, which if successful would gradually ease the government’s high debt burden and turn its credit profile positive. The reforms and the financial changes that the government has introduced, would according to the Moody’s ease its high financial burdens.  In its just-released report, titled, “Government of India: Effective Implementation of Key Fiscal and Banking Sector Reforms Would Address Core Credit Challenges.” The report focusses mainly on 3 key reforms: The Goods and Services Tax (GST), the NPA resolution measures and the Fiscal Responsibility and Budget Management Act (FRBM) Committee recommendations.  On GST, Moody's opines that the “short-term impact of GST reforms may not be visible, but its long-term benefits will include ...

PTI India is expected to clock 7.1% growth this year before edging up to 7.5% in 2018, according to a UN report, which warned that the country faces heightened risks related to the concentration of bad loans in the public sector banks. The UN Economic and Social Commission for Asia and the Pacific (ESCAP) said in its annual flagship report 'The Economic and Social Survey of Asia and the Pacific 2017' launched yesterday that the economic growth for India is projected to be stable at 7.1% in 2017 before edging up to 7.5% in 2018, underpinned by higher private and public consumption and increased infrastructure spending. Growth in India is forecast at 7.1% this year as "re-monetisation restores consumption, ...

The Dollar Business Bureau The gross non-performing assets (NPAs) of banks in India will increase to 10.6% by March 2018 from 9.5% in March 2017, said a rating and research firm in a report. However, there is a fragile revival in the credit quality of the corporates. But the pressure in the banking system is likely to continue in the financial year of 2017-18 and it may reach to 10.6% by March 2018, Crisil warns in a report on Monday. “Credit quality of India Inc is gradually recovering, but the underpinnings remain fragile because some sectors continue to struggle and several large companies remain highly indebted,” it said. The report further said that the gross NPAs of banks that had crossed over Rs.14 trillion ...

The Dollar Business Bureau  The United Kingdom (UK) has informed India that the request for extraditing liquor baron Vijay Mallya, declared as a proclaimed offender in a loan default case, has been approved by the UK’s secretary of state. “The UK Home Department on February 21 conveyed that the request of India for extradition of Mallya has been certified by the secretary of state and sent to the Westminster Magistrates' Court for a district judge to consider the issue of releasing of warrant," said Gopal Baglay, Spokesperson, Ministry of External Affairs. This latest development is a major step ahead towards extraditing the fugitive industrialist, who is wanted in India in a loan default case of more than Rs.9,000 crore. Baglay also pointed out that a ...

The Dollar Business Bureau  China on Sunday cut its growth target to 6.5% this year - a 25-year low - as the country drives through some painful reforms in order to address its debt concerns and seeks to control risks in the financial sector.  China is aiming to expand the economy by about 6.5% in 2017, said Premier Li Keqiang, while speaking at the opening of yearly meeting of the Parliament. The world’s second largest economy had targeted growth of 6.5-7% last year but finally achieved 6.7%, which was the slowest in the past 26 years.  A lending spree and raised government spending have led to worries among the top leadership of the country about increased debt levels and the overheating housing sector.  This year’s ...

The Dollar Business Bureau  In the backdrop of deteriorating microeconomic conditions, the Indian banking sector continues to remain under serious stress, with the non-performing assets increasing to as much as 9.1% in September from 7.8% in March, the RBI said in a statement. According to the Financial Stability Report (FSR) released by the RBI, the gross non-performing advances (GNPAs) ratio of Scheduled Commercial Banks (SCBs) increased to 9.1% from 7.8% between March and September 2016, pushing the overall stressed advances ratio to 12.3% from 11.5%. The report said that if the microeconomic situation does not improve in the near future, the GNPA may grow further. There will be an extra pressure on the banks given high levels of impairment, and as the banks clean up ...

The Dollar Business Bureau  Government’s direct tax treasury has increased to Rs.5.57 lakh crore during the period April 1-December 19, 2016, thereby attaining 65% of the budget estimates.  The mop up from indirect taxes that consist of excise, customs and service tax surged 26.2% to Rs.7.53 lakh crore, in the period from April to November.  Belying the slowdown fears in industrial activity after demonetisation, the collection from indirect tax in the month of November alone increases 23.1% to Rs.67,358 crore.  Finance Minister Arun Jaitley said that regardless of what critics had estimated, the figures shown that until November 30, there is a considerable increase in the indirect taxes.  “We have also tried to check the figures for the month of November which could have been ...