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
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
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
Irrespective of the debate on recent demonetization, it is true that high volume of money entered in to the banking system. many people ,who so long preferred to stay away from banking system, are constrained to avail banking services. There is a tremendous transformation in the use digital devices , which is likely to lead […]Read More
The confidence is reimposed on Indian banking system by an experienced professional. http://m.firstpost.com/business/why-there-arent-many-takers-for-vinod-rais-optimism-on-bank-npa-problem-2781252.html . In fact generation of NPA is an persistent issue with the banking system and the ability to handle such eventualities by Indian banking system is time tested. The difference is in the system. The general psyche of the bank officials was affected […]Read More
Growing NPA is a genuine concern for the country, for which the decision of the top management of the banks are being questioned. The process adopted by the banks in sanction of a proposal is risk complied and is approved by various tiers of the bank. Primarily the credit policy is approved by the Board […]Read More
