{"id":39976,"date":"2019-01-07T17:10:29","date_gmt":"2019-01-07T11:40:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=39976"},"modified":"2019-01-07T17:10:29","modified_gmt":"2019-01-07T11:40:29","slug":"banks-get-a-breather-on-bad-loans","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/banks-get-a-breather-on-bad-loans\/","title":{"rendered":"Banks get a breather on bad loans"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/banks-get-a-breather-on-bad-loans\/article25926632.ece\">Banks get a breather on bad loans<\/a><\/p>\n<p><strong>News<\/strong>:<\/p>\n<p>Decline in Indian banks\u2019 bad loan crisis as per RBI\u2019s latest financial stability report.<\/p>\n<p><strong>Important Facts<\/strong>:<\/p>\n<ul>\n<li>India\u2019s financial system remains stable, and the banking sector shows signs of improvement, even though the global economic environment and the emerging trends in financial sector pose challenges.<\/li>\n<\/ul>\n<p><strong>Financial Institutions: Performance and risks<\/strong><\/p>\n<ul>\n<li>Credit growth of scheduled commercial banks (SCBs) has improved between March 2018 and September 2018, driven largely by private sector banks (PVBs).<\/li>\n<li>The asset quality of banks showed an improvement with the gross non-performing assets (GNPA) ratio of SCBs declining from 11.5 per cent in March 2018 to 10.8 per cent in September 2018.<\/li>\n<li>Under the baseline scenario, GNPA ratio may decline from 10.8 per cent in September 2018 to 10.3 per cent in March 2019.<\/li>\n<li>This is because RBI initiated an asset quality review of individual banks to ferret out their problematic accounts in March 2015.<\/li>\n<li>The bulk of bad loans remains concentrated with public sector banks (GNPA ratio of 14.8%), while private sector banks are much better off (3.8%)<\/li>\n<li>Analysis of the financial network structure for the period September 2017 &#8211; September 2018 reveals a shrinking inter-bank market and increasing bank linkages with asset management companies-mutual funds (AMC-MFs) for raising funds and with NBFCs\/Housing Finance Companies (HFCs) for lending.<\/li>\n<li>The total proportion of \u2018stressed\u2019 loans on bank books (NPAs plus restructured loans) peaked at 12.3% in September 2016 and has steadily declined to 11.3% now.<\/li>\n<li>The average capital adequacy ratio for all banks was at a comfortable 13.4% as of September 2018.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Banks get a breather on bad loans News: Decline in Indian banks\u2019 bad loan crisis as per RBI\u2019s latest financial stability report. Important Facts: India\u2019s financial system remains stable, and the banking sector shows signs of improvement, even though the global economic environment and the emerging trends in financial sector pose challenges. Financial Institutions: Performance&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/banks-get-a-breather-on-bad-loans\/\">Continue reading <span class=\"screen-reader-text\">Banks get a breather on bad loans<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-39976","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700771890,"cached_date":1704745382},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/39976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=39976"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/39976\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=39976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=39976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=39976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}