Some banks make record provisions against bad loans

PCR is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. Some banks make record provisions against bad loans.Banks clean up books as NPA additions slow over the past year.

Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards

Presently, the assets allowed as Level 1 High Quality Liquid Assets (HQLAs) for the purpose of computing the LCR of banks, inter alia, include (a) Government securities in excess of the minimum SLR requirement and, (b) within the mandatory SLR requirement, Government securities to the extent allowed by RBI under (i) Marginal Standing Facility (MSF)…

Rising NPAs in education loan add to banks’ stress

The government is already struggling to deal with the problem of mounting NPA in the public sector banks and has drawn a mega recapitalisation plan to strengthen them.

Banks set to crack down on defaulters in RBI’s second list

A majority of companies on RBI’s second list of loan defaulters, including Monnet Power and Visa Steel, will be referred to NCLT for bankruptcy proceedings
The assets of some of the 40 top defaulters (12 in the first list and 28 in the second) are likely to be sold over the next few months as RBI and the government push lenders to speed up the resolution of Rs10 trillion of soured loans.

Wilful defaulters list – names and amounts of banks and borrowers: All you ever wanted to know

Wilful defaulters list: Finance Minister Arun Jaitley on Thursday said the banks will recover every penny of loan given to him. Jaitey, who was speaking at an event in New Delhi, said investigative agencies will take strong action against the liquor baron wherever he is found to have violated the law. Mallya, who has been declared a wilful defaulter, owes banks over Rs 9,000 crore.

FinMin asks PSBs to explore acquisition of smaller banks – Number of PSBs may go down to 12 as govt mulls consolidation

Number of PSBs may go down to 12 as govt mulls consolidation . The government is working on a consolidation agenda with a view to creating 3-4 global-sized banks and reduce the number of state-owned lenders to about 12.

Banks will have to take Rs 2.4 lakh crore haircut to resolve India’s top 50 NPAs: Crisil

‘Top 50 stressed a/cs will need ₹2.4 lakh cr haircut’.This amounts to 60% of the ₹4 lakh crore exposure to these accounts: Crisil report

Section 24 and Section 56 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR)

Section 24 and Section 56 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR)

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002- Section 3 (1) (b) – Requirement of Net Owned Fund (NOF) for Asset Reconstruction Companies

RBI Notification DNBR (PD-ARC) No. 05/ED(SS)-2017 dated April 28, 2017In exercise of the powers conferred by clause (b) of sub-section (1) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Reserve Bank of India hereby specifies that the Net Owned Fund (NOF) for Asset Reconstruction Companies…

Factors and Policy affecting Bankers

A good and informative article shared from my friend Shri Arvind Mannur’s post:MAJOR POLICIES THAT AFFECT BANKS:All the major policy matters decide the destiny of banks. Look at the following:1. MONETARY POLICY decides the volume of business growth, interest rates on deposits & lending, and all other prudential regulations.2. FISCAL POLICY decides the tax matters…