Banks may face a sharp surge in bad loans in FY22: ICRA
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The ratings firm, expects, loan restructuring at 1.3-1.5% of the advances, much lower than its initial estimates. Despite the impact of Covid-19 pandemic on debt servicing ability of borrowers, the gross fresh slippages for banks stood much lower at Rs 1.8 lakh crore at the web of December 2020, as compared to Rs. 3.6 lakh crore same time the year prior.
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Gross bad loans were at 8.6% as on March 2020 and 8.3% (proforma basis) at the end of December 2020.
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Bad loans of Indian banks could rise significantly in the current fiscal year as government and the Reserve Bank of India rollback regulatory and fiscal support measures, according to domestic rating agency ICRA. Banks could see gross bad loans rise to 9.7% at the end of the fiscal year March 2021 and 10.2% by the end of fiscal year 2022,
La JERS ve necesaria la reestructuración de la deuda de algunas empresas
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ICRA warns of significant jump in bad loans in current fiscal year
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Synopsis
The ratings firm, expects, loan restructuring at 1.3-1.5% of the advances, much lower than its initial estimates. Despite the impact of Covid-19 pandemic on debt servicing ability of borrowers, the gross fresh slippages for banks stood much lower at Rs 1.8 lakh crore at the web of December 2020, as compared to Rs. 3.6 lakh crore same time the year prior.
ThinkStock Photos
Gross bad loans were at 8.6% as on March 2020 and 8.3% (proforma basis) at the end of December 2020.
Bad loans of Indian banks could rise significantly in the current fiscal year as government and the Reserve Bank of India rollback regulatory and fiscal support measures, according to domestic rating agency ICRA. Banks could see gross bad loans rise to 9.7% at the end of the fiscal year March 2021 and 10.2% by the end of fiscal year 2022,
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Government owned Indian Bank has declared bad loans amounting Rs 202.32 crore to seven domestic borrowers and $5.289 million lent to a foreign company as fraud. The bank has said it has provided a sum of Rs 129.97 crore as on December 31 last year for the loans to seven domestic borrowers and $5.289 million for the amount lent to the foreign borrower.
Indian Bank said the eight borrowers who had borrowed money and committed the fraud are: Srinivasan Health and Educational Trust (Rs 34.83 crore, nature of fraud is diversion of funds), Indian Gem & Jewellery Imperial Pvt. Ltd (Rs 30.08 crore, diversion of funds), Gold Touch Jewellery Pvt. Ltd (Rs 5 crore, diversion of funds), S. R. Alcobev Pvt. Ltd (Rs 30.54 crore, diversion of funds), Infrastructure Leasing & Financial Services Ltd (Rs 74.40 crore, diversion of funds), Agri Gold Projects Ltd (Rs 23.83 crore, diversion of funds), Jagdeep Singh & Company (Rs 3.64 crore, defective title deed/imperfect mortgage) and Farlin Timbers Pvt
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