The Reserve Bank of India (RBI)’s expert committee on primary (urban) co-operative banks (UCBs) has recommended a regulatory nudge for weak UCBs to explore voluntary merger or conversion into a non-banking society at an early stage.
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1 Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders.
Sandeep Dikshit
New Delhi, January 11
Bad loans of Indian banks may double by September this year despite a slight improvement in the gross non-performing assets (NPA) during the Covid era, according to an RBI report released on Monday.
Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders, it warned.
The warning came on a day the RBI cancelled the licence of Vasantdada Nagari Sahakari Bank. The Maharashtra-headquartered bank will be unable to pay its present depositors, said the RBI.
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Sandeep Dikshit
New Delhi, January 11
Bad loans of Indian banks may double by September this year despite a slight improvement in the gross non-performing assets (GNPA) during the Covid era, according to a RBI report released on Monday.
Four banks may fail to meet the minimum capital level by September 2021 if there is no resuscitation by the stakeholders, it warned.
The warning came on a day the RBI cancelled the licence of Vasantdada Nagari Sahakari Bank. The Maharashtra-headquartered bank will be unable to pay its present depositors, said the RBI.
Stress tests by the RBI’s Financial Stability and Development Council showed that the GNPA ratio of all banks may nearly double from the current 7.5% to a minimum of 13.5% and a maximum of 14.8%.