|
|
|
52% banks report fall in bad loans in January-June: Survey
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 14 Aug, 2019
The proportion of banks citing reduction in non-performing assets (NPAs)
stood at 52 per cent in the January-June period as against 43 per cent
in the previous round, a Ficci-IBA report said.
The current round of the bankers' survey presented an improved picture of the changing trend in NPAs.
Amongst
the public sector banks (PSBs), about 55 per cent of lenders have cited
reduction in NPA levels. Among the respondents stating infrastructure
as high NPA sector, about 63 per cent have reported a decline in NPAs
over the last six months.
Likewise, 57 per cent of the
respondents citing engineering goods as high NPA sector have mentioned a
fall in NPA levels in this sector, while about 92 per cent of those
indicating metals/iron and steel as high NPA sector have indicated a
decline in NPAs in that sector over the last six months, the report
pointed out.
A large majority of respondent banks (70 per cent)
reported a rise in the share of CASA deposits in the first half of 2019,
which is lower than the 78 per cent of respondents reported in the
previous round of the survey.
In terms of the composition of
loans and advances, there has not been any change in the current round
as compared to the previous round of the survey. The share of retail
loans stood at 45 per cent while that of corporate loans at 55 per cent.
Some
of the key sectors that are expected to see higher credit in the next
six months as identified by the participating banks are infrastructure,
metals, real estate, auto & auto components, pharmaceuticals and
food processing.
Majority of the banks were of the view that the
establishment of Development Financial Institutions (DFIs) will help in
boosting the flow of credit into the infrastructure sector and will help
in addressing the asset-liability problem faced by the banks. The
respondent banks also felt that source of funds will be an important
factor in the success of DFIs.
They also proposed raising
long-term finance from infra-bonds, equity and the budgetary allocations
of the government, suggesting tax exemptions for investment in
infra-bonds.
The responses were received just before the presentation of the Union Budget 2019-20.
In
fact, the Budget did lay special emphasis on the banking and financial
sector, including capital infusion of Rs 70,000 crore into PSBs and a
proposal to provide one time six months' partial credit guarantee to
PSBs for first loss of up to 10 per cent for purchase of high-rated
pooled assets of financially sound NBFCs. These measures should help
address the liquidity constraint besides ensuring greater lending to
support growth.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|