Tag: npa

Asian Paints on Tuesday reported a consolidated net profit of ₹1,036 crores, up over 80% as compared to ₹574 crores in the same quarter last year, as the business grew both in volume and value terms. Its revenue surged more than 54% to ₹8,607 crores as against ₹5,585 crore year-on-year (YoY).On a standalone basis, Asian Paint's revenue for the quarter under review increased by 59.6% whereas standalone Net Profit for the quarter rose by 70.7%. Asian Paints' total expenses were at Rs 7,287.84 crore, up 48.91 percent in Q1/FY 2022-23, as against Rs 4,893.87 crore in the corresponding period."The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year, which had suffered from the first nationwide lockdown. The industrial business and the home improvement business also doubled its revenue on last year's low base," Amit Syngle, Managing Director & CEO of the paint company said. Read more

The gross non-performing assets (NPAs) of Indian banking systems are estimated to decline to 5.6-5.7 percent by March 2023 from 6.2-6.3 percent in March 2022, according to ICRA. Thus the asset quality of the Indian banking system is set to improve further. The NPAs will decline to 1.7-1.8 percent by end of the current financial year (FY23) as against an estimate of 2 percent by March 2022. However, the rating agency added a caveat saying the performance of restructured loan book poses uncertainty to asset quality. The Russia-Ukraine conflict poses macro-economic challenges related to cost inflation, higher interest rates, and exchange rate volatility, which could pressurise asset quality, it added. The credit and other provisions are estimated to dip to 1.3-1.4 percent of advances in FY23 as against an estimated 1.7-1.8 percent in FY22, said Anil Gupta, vice president, ICRA. Read more

Shares of Sun Pharmaceutical Industries Ltd gained 2.5 percent on January 31 after the company reported an 11% rise in its consolidated net profit to Rs 2,058.80 crore in the December quarter. The pharma major had reported a net profit of ₹1,852 crores in the December quarter of last year. Consolidated net sales for the quarter increased 11.41% from a year ago to Rs 9,814.17 crore. Total cost advanced 12% to Rs 7,829.38 crore. The company's board has also declared an interim dividend of ₹7 for the financial year ending on March 31, 2022. Operating EBITDA margin declined sharply to 17.12% in the quarter from 20.43% a quarter ago and 20.97% a year ago. The sale of formulations in the domestic market during the third quarter was at ₹3,167 crores, up by 15% over last year and accounting for 32% of total sales. Read more

When the Covid-19 pandemic broke out in March last year and a nationwide lockdown was imposed to restrict its spread, there were concerns all around over its impact on the banking sector. Bad loans were stabilising after a relentless rise for several years and there was a ray of hope for the banking sector after a long time with non-performing assets have crossed the hump. Then the Covid-19 pandemic broke out crippling economic activity due to the lockdown and fears of asset quality problems resurfaced. The Reserve Bank of India (RBI) too, raised a red flag about the possible ballooning of bad loans. Stress tests by RBI projected gross non-performing assets of the Indian banks to shoot up to 13.5% by September 2021 as compared to 7.5% in September 2020 – under a baseline scenario. The situation was predicted to worsen under a severe stress scenario. Read more

Bank of Baroda (BoB) reported a standalone net loss of Rs 1,046 crore for the March quarter (Q4FY21). It had posted a profit of Rs 506.6 crore in the same period last year (Q4FY20). BoB's net interest income (NII)-the difference between interest earned and interest expended increased 4.5 percent to Rs 7,107 crore for the fourth quarter as compared to Rs 6,798.2 crore in the year-earlier period. On a consolidated basis, the net loss of the lender stood at Rs 740 crore for the quarter. The Bank’s gross non-performing assets (NPAs) rose sequentially to 8.87 percent in Q4FY21. In Q3FY21, gross NPAs of the bank were at 8.48 percent. Meanwhile, net NPAs stood at 3.09 percent. The Bank has stopped short of declaring any dividend for the financial year 2020-21. Read more

Commercial banks have requested the RBI to relax norms on the classification for non-performing loans for micro, medium, and small enterprises (MSMEs) in view of the stress the sector is facing due to lockdowns imposed by different state governments following the second Covid-19 wave. Sources said a request was made to the banking regulator to extend the non-performing asset classification norms for MSME borrowers to 180 days from 90 days now. A sub-standard loan is the first category of NPA. Bankers said the MSME sector was already reeling under pressure and now the second wave will make things extremely difficult for the sector. Read more

Today(10th Sept.2020)The Supreme Court of India extended its interim order that no account is to be declared NPA till further orders after the Centre said an expert panel has been set up to look into the issue of interest being charged by banks on instalments deferred during the moratorium period due to the COVID-19 pandemic. The top court was hearing a batch of pleas which have raised the issue of interest being charged on instalments which were deferred during the moratorium period due to the COVID-19 pandemic. The top court granted two weeks to the Centre and Reserve Bank of India (RBI) to file the affidavit and place before it the decisions taken in this regard. Read more

Gross NPAs of banks are likely to worsen to 11.3-11.6 percent by the end of this financial year from 8.6 percent as of March 2020, due to disruptions caused by the coronavirus pandemic, according to a report. Fresh gross slippages are estimated to be at 5-5.5 percent of standard advances during 2020-21, which will increase the banks' credit provision and impact their earnings, rating agency Icra said in a report. With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said. Read more