Was RBI window dressing on corporate debt restructuring?

 1. Stressed assets - which include both bad loans officially classified as  NPAs  and those under  CDR - reportedly account for   nearly 11 per cent of total bank advances.   Some of the mid sized public sector banks  seem to be severely afflicted. Since late 1980s, RBI has been talking of  tackling NPAs to little effect.  Stressed assets seem to compete with capital adequacy ratios of banks!!!

2. As at the end of September, 7,265   wilful defaulters owed over Rs 64,300 crore to public sector  banks and 115 cases had  bank officials  conniving with the borrowers, according to the government data .

3. Special Mention 1   (31-60 day due and  SMA 2 (60 to 90 days loan servicing delay)  are reportedly a cause for concern as that could result in high NPA slippage ratio.

4. Presently, the total amount of NPAs   of Indian banks is estimated at Rs 3 lakh crores. Total loans under the corporate debt restructuring (CDR) is estimated at around that figure! The total figures might be too much for the system to bear a burden.    

5. Given the heavy lending into infrastructure /power sectors, Indian banks may be walking in to severe winter of NPA season. 

No wonder why the Supreme Court has upheld the need for transparency in banking.The RBI seems to be shielding from the taxpayer in the name of secrecy.

Table for comprehending Indian lakhs / crores to million/ billion

1 Lakh		100,000.00	100 Thousands
10 Lakhs		1,000,000.00	1 Million
1 Crore		10,000,000.00	10 Million
10 Crores		100,000,000.00	100 Million
100 Crores		1,000,000,000.00	1 Billion

Tail piece: There are 3507 pending corporate litigations ; 1400 over a decade; 586 0ver 20 years in India. Ease of doing business. 

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