MUMBAI: The Reserve Bank of India on Monday relaxed guidelines for restructuring of large stressed assets by lenders in a move that would allow the banks to more effectively manage bad loans on their books. India’s banks are saddled with about $120 billion in stressed loans, or 11.5 percent of the total, and RBI Governor…
SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS Net Interest Income There is no such thing as turnover or sales for banks. Instead, net interest margin is an indicator of bank’s performance; it is the difference between the income earned on lending and interest spent…
What is Negative Interest Rate?DEFINITION of ‘Negative Interest Rate Policy (NIRP)’ A negative interest rate policy (NIRP) is an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.A negative interest rate means the Central Bank and perhaps private banks will charge…
PNB reports Q4 loss of Rs 5,370 crore, biggest in Indian banking history. Next to follow suit is Bank of Baroda, Syndicate Bank, UCO Bank and Central Bank. Many more PSU Banks are incurring losses in Q-4, except Union Bank of India which is the only Bank to post Profit of Rs. 97 Crores. Reasons for…
Talking of NPAs or toxic assets in the context of Indian banks , this should be an interesting read…………The total amount of bad loans in India’s banks is bigger than the GDP of 112 countries.India’s burden of bad loans is truly gigantic.An analyst from India Ratings and Research, a credit ratings agency and a unit…
The main reasons for increase in NPAs of banks include sluggishness in domestic growth during the recent past, slowdown in recovery in the global economy and continuing uncertainty in the global markets leading to lower exports of various products like textile, engineering goods, leather, gems.Besides external factors, Finance Ministry’s annual report said, ban in mining…
The National Payments Corp. of India Ltd’s (NPCI) most ambitious project, unified payments interface (UPI) system, will go live on Monday. The payments interface is expected to bring about a significant shift in the way mobile banking transactions are conducted. 1. Reduce need for e-wallets: UPI is set to allow you to make payments using…
The Goals of Monetary PolicyPrimarily price stability, while keeping in mind the objective of growth.In India, subsequent to the recommendations of the Dr. Urjit Patel Committee Report, the Reserve Bank has formally announced a “glide path” for disinflation that sets an objective of below 8 per cent CPI inflation by January 2015 and below 6…
Much of the economy depends on oil. This is why prices of oil matter to almost every economy. Global crude oil prices are down nearly by 60% this year to $40 per barrel-levels from $110 / barrel at the start of the year. This has caused a crisis in countries like Russia, which depends on…
Reserve Bank of India softened the rules for Liquidity Measurement and Risk Management making the Banks feel comfortable on Liquidity Measurement aspect.