Now that the Reserve Bank of India (RBI) is pushing for an early recognition of financial distress and prompt steps for resolution and recovery of bad assets, will analysts rush to re-rate public sector banks that have the highest pile of bad loans? It’s unlikely to happen soon as the proposed norms deal with new bad loans and not the stock and do not give any handle to bankers to address issues on which they have no control. For instance, infrastructure firms that have been badly hit by project delays constitute a large chunk of bad loans. About 215 projects worth Rs.
The Reserve Bank of India (RBI) on Wednesday chose to keep its key policy rates unchanged despite the fact that retail inflation in November accelerated to 11.24%, the highest ever since the data series was introduced in January 2012, and wholesale inflation in November spiked to 7.52%, the highest since September 2012.
India’s central bank is increasingly getting worried about the rising bad assets of public sector banks, which roughly account for three-fourths of the assets in the Rs.80 trillion banking industry. It has been playing the typical good cop-bad cop game.
Mumbai: SKS Microfinance Ltd’s annual general meeting (AGM) in Mumbai on Tuesday was a largely tame affair with SKS Trust Advisors Pvt. Ltd (STAPL), the largest shareholder in the company, choosing not to press its demand for a board seat for founder Vikram Akula. STAPL, however, forced the company to put all seven resolutions to vote at the AGM—four ordinary and three special resolutions, including one on reappointment of its managing director and chief executive officer (CEO) M.
Finance minister P. Chidambaram at a recent banking seminar endorsed the need for different models of banking, saying that the nation needs different kinds of banks to cater to different segments of Indian society. Chidambaram’s comment is critical, coming at a time when the Reserve Bank of India (RBI) and a high-profile panel, headed by former central bank governor Bimal Jalan, are scrutinizing 26 applications to float new banks.