Subsequent to Basle implementation expansion of lending business requires substantial enhancement of capital for continuing lending operations. Quality of portfolio plays a vital role, since any degradation of qualitative status of portfolio requires acquisition of additional capital ( lower rated exposures attract higher capital adequacy) for which bank has to approach government/ other stake holders. […]Read More
It is an essential prerequisite for the bank officilas to be familiar with the preventive vigilance guidelines in order to insulate the organisation as well as himself/herself from non compliances affecting the credentials of the officer as well as the bank.A brief introduction to preventive vigilance is given here under from “bankersfeed” for general wellbeing […]Read More
The objective of Credit Risk Management is to reduce the degree of impairment by arriving at certain mitigating measures after extrapolating the past data and using statistical analysis to decide the prospects of default. The process is continuous which require regular evaluation of portfolio, audit of sample accounts , analysis of data. The major instrument […]Read More
The corrective measures introduced in budget and subsequent policies announced by the regulator reveals that the authorities are well aware of the constraints in banking sector and all the policies are pragmatic and in right direction.What is lagging is the process of implementation. Historically banking segment, because of primarily human orientation, responds to certain method of implementation. […]Read More
The assurance given by the prime minister “bankers will be allowed to work without fear..” and subsequent statement by Finance Minister coveys the feeling that the ailment is diagnosed and government is taking corrective measures to reinstate the credit decision making process. What prompted the decision? Let us have a look in to the recent credit […]Read More
Rejuvenation of MSME segment is an essential requirement for accelerating demand, employment generation and effective utilization of resources. A series of measures taken by the regulator in recent past , for improvement in lending to MSME segment is yet to be reciprocated. The position prompted government to consider extension guarantee for sanction of credit by banks. This […]Read More
The assurance given by the prime minister “bankers will be allowed to work without fear..” and subsequent statement by Finance Minister coveys the feeling that the ailment is diagnosed and government is taking corrective measures to reinstate the credit decision making process. What prompted the decision? Let us have a look in to the recent credit […]Read More
The economic survey 2018-19 identifies private investment a a key for growth and RBI warns against excess lending, which gives a mixed signal regarding sovereign expectation. In the present context both the statements are true , which makes the task more complicated. How to achieve the objective. Generally the prognosis is on the manifestation of […]Read More
Recent decision to restrict issue of LOU by banks impacted the buyers credit facility enjoyed by the corporate. In lieu of buyers credit the corporate will be constrained to resort to rupee borrowing and purchase dollar/euro/ other currencies to meet their obligation on import. Alternatively they can shift to suppliers credit , which can be […]Read More
The recent announcement of loan waiver created ripples in the banking sector. Bankers are aware of the impact of such decision. The sincere farmers, who are willing to work and try to repay bank loan will consider itself as disincentive and will turn out to be defaulter, which might affect a large segment of performing […]Read More
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