• Rajasthan

    Cong 99
    BJP 73
    RLM 3
    OTH 24
  • Madhya Pradesh

    Cong 112
    BJP 108
    BSP 2
    OTH 5
  • Chhattisgarh

    Cong 67
    BJP 15
    JCC 7
    OTH 0
  • Telangana

    TRS-AIMIM 95
    TDP-Cong 21
    BJP 1
    OTH 2
  • Mizoram

    MNF 26
    Cong 5
    BJP 1
    OTH 8

* Total Tally Reflects Leads + Wins

NPA resolution derailed by delayed decision making by banks and not demonetisation: KV Kamath

By: | Updated: March 31, 2017 11:42 AM

Stating that NPA resolution was derailed by delayed decision making by banks and not demonetisation, KV Kamath, President, New Development Bank (NDB) on Friday said NPA is the biggest hurdle to growth and timely NPA resolution is a must.

Lauding RBI Kamath said, the first major step to resolve NPAs was by RBI to make banks recognize NPAs.

Stating that NPA resolution was derailed by delayed decision making by banks and not demonetisation, KV Kamath, President, New Development Bank (NDB) on Friday said NPA is the biggest hurdle to growth and timely NPA resolution is a must. “After banks have done provisioning, we need to push the resolution of NPAs urgently,” he told ET Now. Lauding RBI Kamath said, the first major step to resolve NPAs was by RBI to make banks recognize NPAs.

Earlier this week, Chief Economic Adviser Arvind Subramanian said, the twin balance sheet problem — over-leveraged companies and bad-loan-encumbered banks — is perhaps India’s top macroeconomic challenge at the moment and how much of haircut the banks will have to take is at the core of the problem. Total stressed assets (gross non-performing assets or NPAs and restructured standard advances) of scheduled commercial banks were to the tune of Rs 9.64 lakh crore as of December 31, minister of state for finance Santosh Kumar Gangwar told Parliament this month.

 

 

Banks Board Bureau chairman Vinod Rai on Tuesday said that if the government creates a bad bank, it would be crucial to empower and capitalize it. NPAs had reached 9% of total advances by September 2016, double their level a year earlier. Importantly, more than four-fifths of the NPAs were in the public sector banks, where the NPA ratio had touched almost 12%. Taking a sample of 39 top banks, CARE Ratings has estimated that NPAs accounted for Rs 6,97,409 crore — or 9.3% of their advances — as of December 2016.

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