Growth in unsecured loans is on account of a surge in discretionary spending, increased availability of customer data, faster disbursements driven by technology, and lower interest rates in some segments.
After prime lending rate, benchmark prime lending rate, base rate and marginal cost of funds-based lending rate, the central bank is planning to come up with another system to price loans.
FinMin seeks views on setting up external committee to approve one-time NPA settlement applications of PSBs.
A bench led by Chief Justice T S Thakur said that a “sensible and sensitive” approach is required to overhaul the entire system, which today has scores of people and entities with outstanding to the tunes of crore of rupees.
RBI’s new norms on purchase and sale of PSL certificates can help some banks avoid targeted lending — a drag on those with expertise in other sectors— and promote efficient lending practices.
The legacy of unplanned hiring in past decades, the dizzying pace of recent technological change, and the new, unprecedented competition threaten to reduce Indian government banks to zombies five years from now, says P Vaidyanathan Iyer.
In the last three years, public sector banks have written off Rs 1,14,000 crore as reported by The Indian Express on February 8. The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs did not mean all was lost.
Merely rescuing the banking system from the existing emergency will only clear the way to the next one. Policy should go into causal factors.
Loans sanctioned by banks for housing projects exclusively for economically weaker sections will also be considered as PSL
Lenders can either appoint a management that can pull the company out of its morass, sell it or move for its winding up, it said.
Facility is available with certain conditions, including an interest rate limit of 200 bps above the Libor.
A fifth of all loans that have been recast,via CDR cell could turn into non-performing assets.
In Q2 review of monetary policy,RBI chief Raghuram Rajan increased repo rate by 25 bps.
State Bank group’s loan recovery maximum in Q2 while Bank of India writes-off most.
Jobs uncertainty among young spenders is working as a big dampener for bank loans,says survey.