- Tag results for bad loans
The state-run bank has made recoveries worth Rs 16,600 crore from bad loans this fiscal year.
According to Malappuram District Cooperative Bank DGM Saramol C M, gold loans generally witness low NPAs as it is more liquid and price realisation is far easier.
As per the analysis, the difference in bad loan reporting also resulted in a variation in provisioning among banks and profits.
State-run banks have reduced a staggering Rs 2.22 lakh crore from their NPA tallies as loan recovery efforts paid off in the last three and half years, shows latest data.
The Basel III norms recommend risk-weights for various credit exposures, based on cumulative default rates (CDR) and recovery rates observed internationally.
The 19 nationalised banks, including PNB and Canara Bank, reported a net loss of Rs 21,388 crore in the first half of the fiscal.
'The reduction is due to two reasons — improved provisioning and write-offs and increasing recoveries,' Anil Gupta, Head of financial sector ratings, ICRA told Express.
In an exhaustive 66-page order, the panel pulled up the Prime Minister's Office for not complying with its directive to disclose the letter from former RBI Governor Rajan on bad loans.
There are an estimated 200 large NPA accounts in various PSU banks with a total exposure of `3 lakh crore.
If not in this board meeting, sources said, the issue of relaxation of PCA framework which the finance ministry has been pitching for would be reached in the next few weeks.
The bank saw a total business growth of 14.28 per cent which amounted to a profit of around four lakh crores.
The standoff was in relation to RBI's handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector.
India's banks have been plagued by a surge in non-performing loans which hit a record $150 billion at the end of March.
Congress President Rahul Gandhi used the report to attack the government, saying demonetisation converted black money into white and Rs 3.16 lakh crore of loans were written off.
Amid mounting bad loans plaguing the banking system, the State Bank of India (SBI) has set up an intermediary mechanism to review sectors of exposure.