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Dear ck.kislay,
You are subscribed to the thread "Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations" by pcpune, there have been 2 post(s) to this thread, the last poster was Manoj2012.
https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/9993-indian-stock-advice-trading-strategies-trends-market-predictions-regulations
These following posts were made to the thread:
https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/9993-indian-stock-advice-trading-strategies-trends-market-predictions-regulations
Posted by: humblefool
On: February 13 2018 07:37 PM
[QUOTE=southsea;n2581517]Anyone else here think the bad loan issue is firstly worse than advertised and secondly going to get worse if interest rates rise ? Just when everyone thought these things were under control, SBI reported higher than expected NPAs. [/QUOTE]It is. Or it should have been. But eventually, 'too big to fail' thing will kick in and they will either restructure the loans or they will just issue a tax payers bailout. Also LTCG taxes eventually will be at parity with Income tax rates. And most people seem to be more than happy to pay anyway. So its really nothing worry about really. People are ready to pay taxes to bailout businesses, businesses are lucky to have a country full of bakras of this level, and banks too get money. So don't worry, everything is under control.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/9993-indian-stock-advice-trading-strategies-trends-market-predictions-regulations
Posted by: Manoj2012
On: February 13 2018 10:45 PM
[SIZE=24px][B]Rs 23,000 crore in hidden bad loans puts spotlight on banking sector stress[/B][/SIZE] Bloomberg | Feb 12, 2018, 12:41 IST [B]HIGHLIGHTS[/B][LIST][*]RBI has unearthed about Rs 23,000 crore of bad loans in the books of the country�s biggest lender- State Bank of India[*]The bulk of the divergence - about Rs 10,000 crore - came from the power sector[*]SBI�s admission is particularly striking because the lender is often seen as a proxy for the nation�s economy[/LIST]The [URL="https://timesofindia.indiatimes.com/topic/Reserve-Bank-Of-India"]Reserve Bank of India[/URL] (RBI) unearthed about Rs 23,000 crore of [URL="https://timesofindia.indiatimes.com/topic/bad-loans"]bad loans[/URL] in the books of the country's biggest lender- State Bank of India ([URL="https://timesofindia.indiatimes.com/topic/SBI"]SBI[/URL]), amplifying questions about distress in the financial sector given under-reporting by some rivals as well. SBI on Friday said an audit by the central bank showed soured debt was about Rs 23,200 crore higher than what the state-run lender reported for the end of March 2017. The biggest private lender [URL="https://economictimes.indiatimes.com/hdfc-bank-ltd/stocks/companyid-9195.cms"]HDFC Bank[/URL] Ltd. had a Rs 20,500 crore divergence, while [URL="https://economictimes.indiatimes.com/icici-bank-ltd/stocks/companyid-9194.cms"]ICICI Bank[/URL] said -- without elaborating -- that it isn't required to make disclosures on the topic even as provisions for bad loans climbed. It had reported a divergence in the previous year. Indian banks must disclose such discrepancies if the gap between reported numbers and the RBI's audit findings is more than 15 per cent. State Bank of India's admission is particularly striking because the lender is often seen as a proxy for the nation's economy, where the ratio of bad loans has surged to be among the highest in the world. The problem has grabbed so many headlines that Prime Minister Narendra Modi cited it to attack the policies of his predecessor in parliament last week. "If India's premier state-run bank is reporting such divergence it shows how deep the rot runs in the nation's banking system," said Hemindra Hazari, a Mumbai-based independent banking analyst who has covered the sector for two decades and publishes at Smartkarma.com. "Cleaning up this mess is going to take much more effort and time than what people expect." SBI's shares fell 1.9 per cent to Rs 290.85 as of 12.24 pm on the BSE on Monday, extending this year's drop to 6.6 per cent. Most of the accounts identified by the RBI in its risk assessment were already on the stressed asset list "in one way or another," State Bank of India Chairman Rajnish Kumar said in a conference call with reporters. The bulk of the divergence -- about Rs 10,000 crore -- came from the power sector, he said. Divergences occurred earlier as well, though what's changed is the mandatory disclosure of the gaps, central bank Deputy Governor N S Vishwanathan said last month. [B]UNNERVING DIVERGENCE[/B] The regulator has also sought to reclassify loans given by a consortium as non-performing for all the lenders involved if it was considered non-performing on the books of one of them, as part of tighter asset classification norms that came into effect from 2016. Recommended By Colombia "The divergence in asset quality from numbers reported earlier is unnerving," said Asutosh Kumar Mishra, a Mumbai-based banking analyst at Reliance Securities Ltd. "While the loan growth is showing early signs of revival, provisions for bad loans will continue to weigh on profit growth in coming quarters." State Bank of India on Friday reported a Rs 24,200 crore loss for the quarter ended December 31, its first in at least 17 years. Analysts in a Bloomberg survey had predicted a Rs 20,600 crore profit. Its divergence amounted to 20 per cent of the lender's reported non-performing loans, while HDFC Bank's gap was 35 per cent, according to calculations by BloombergQuint. Private lenders [URL="https://economictimes.indiatimes.com/axis-bank-ltd/stocks/companyid-9175.cms"]Axis Bank[/URL] and [URL="https://economictimes.indiatimes.com/yes-bank-ltd/stocks/companyid-16552.cms"]Yes Bank[/URL] also had significant discrepancies. SBI's loss was due to hardening bond yields, treasury declines and provisions for payments to employees, Chairman Kumar said during the conference call. [URL="https://timesofindia.indiatimes.com/business/india-business/rs-23000-crore-in-hidden-bad-loans-puts-spotlight-on-banking-sector-stress/articleshow/62882021.cms"]https://timesofindia.indiatimes.com...anking-sector-stress/articleshow/62882021.cms[/URL]
With warm regards,
Team IREF
With warm regards,
Team IREF
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