Concerns over recapitalization of banks are likely to increase

-

Mumbai, Ta. 12 January 2021, Tuesday

Concerns about the capitalization of banks, especially state-owned banks, are likely to increase. The state-owned banks are currently in a weak position in the country's banking sector and their gross non-performing assets (NPAs) are expected to increase to 14.50 per cent by September 2021, according to the Reserve Bank's Financial Stability Report. In the most unfavorable conditions, the proportion could be as high as 15.50 per cent.

In September 2020, the gross NPAs stood at 6.50%. Private and foreign banks are in a better position than government banks. NPAs in private banks are likely to rise to 6.50 per cent, while in times of extreme stress, the figure could be as high as 7.50 per cent.

According to the report, foreign banks are likely to see this ratio at 7.50 per cent and 5.50 per cent respectively.

The low valuations of public sector banks have made it difficult for them to raise money from the market.

In the financial year 2015-16 to 2016-20, the government has invested Rs 4.5 trillion in these banks. The market cap of these banks is Rs 3 trillion, which is only 12.5 per cent more than the amount disbursed in the last five years.

The report also expressed concern over the deteriorating asset quality of not only state-owned banks but also non-banking financial companies (NBFCs).

The report notes that the situation was caused by a disruption in trade caused by Corona.

At the end of March 2020, the gross NPA ratio of large NBFCs was 7.50 per cent, which could rise to 6.50 per cent in a very unfavorable situation.

Comments

Post a Comment

Popular posts from this blog

Covid-19 effect: Significant increase in demand for second hand cars in the country

-
Image
Mumbai, May 26, 2020, Tuesday As lockdowns are being phased out across the country, the use of private vehicles using public transport to reach their destinations is on the rise. The increasing use of private vehicles has also increased the demand for cars, especially secondhand cars. Demand for second-hand cars is unprecedented. Inquiries for second-hand cars have almost doubled during the lockdown period compared to the time before the lockdown, according to a survey of about 100 dealers and car buyers. Demand for used cars at dealers has been strong in the last few weeks, and is expected to grow as the lockdown eases. Consumers are increasingly interested in buying second-hand cars, especially smaller ones, due to lower income levels and health-related safety, said an organized second-hand car dealer. Inquiries for a particular vehicle, which used to be around 15 per cent before the lockdown, have now doubled to 5 per cent. Inquiries for new vehicles have fallen from 21 per cen...
Read more

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more