Reuters has a telling article which says that Indian banks are camouflaging bad loans. ("As India's Rajan tightens screws, banks can still disguise bad debts" dated 9th December 2015)
It states that $ 110 billion is the quantum of stressed assets ; and down the line, Indian banks have to make provisions for these assets which will impact not just bottomlines (read losses ) but also its functional abilities. A case study of Bank of India is a pointer to the dismal functioning of a public sector bank (see http://www.bankofindia.co.in/UserFiles/File/Q2-FY16-PRESENTATION-30092015-ED-SIR-Copy.pdf) :
It states that $ 110 billion is the quantum of stressed assets ; and down the line, Indian banks have to make provisions for these assets which will impact not just bottomlines (read losses ) but also its functional abilities. A case study of Bank of India is a pointer to the dismal functioning of a public sector bank (see http://www.bankofindia.co.in/UserFiles/File/Q2-FY16-PRESENTATION-30092015-ED-SIR-Copy.pdf) :
Operating Profit (Q2) Rs. Crs 1,458 -31.74% (YOY)
Net Profit/Loss (Q2) Rs. Crs -1126 -162.63% (YOY)
Gross NPA Rs. Crs 29,894 - % to Advances 7.55%
Net NPA Rs. Crs 16,466 - % to Advances 4.31%
TOTAL RESTRUCTURED PORTFOLIO (DOMESTIC)
Rs. Crs 30,209 Of Which
Rs. Crs Standard 18,678
Rs. Crs NPA 11,531
Slippages to NPA during quarters this year
March Q Rs. Crs 6,547
June Q Rs. Crs 6,535
September Rs. Crs 6,251
Why should the taxpayer fund inefficiency?
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