Connect with us

Business

Banks’ bad loans may soar to 9.5% by Sept 2022: RBI

Published

on

Banks’ bad loans may soar to 9.5% by Sept 2022: RBI

The Reserve Bank of India predicted on Wednesday that by September next year, the non-performing loans of Indian banks may rise to 9.5% of its total loans.

The central bank pointed out in its biennial financial stability report that if India’s GDP shrinks by 2.1% in the second half of this fiscal year and grows by 1.1% in the first half of the year, this will happen in a “severe stress scenario”. condition. Half of the 2022-’23 fiscal year.

The Reserve Bank of India stated that under the “baseline scenario,” that is, GDP growth in the second half of this fiscal year will be 6.3%, and GDP growth in the next fiscal year will be 12.5%, and non-performing loans may rise to 8.1%.

The Reserve Bank of India reported that in September this year, non-performing loans accounted for 6.9% of total loans, a record low in six years. However, the central bank pointed out that research in emerging economies shows that non-performing loans usually peak within six to eight quarters after the start of a recession.

Advertisement

The Indian economy has entered a recession phase in the second quarter (July to September) of the last fiscal year (2020-21). When GDP shrinks for two or more consecutive quarters, the economy is considered to be in a technological recession.

Affected by the nationwide coronavirus lockdown, the Indian economy contracted an unprecedented 23.9% in the first quarter of the previous fiscal year (April to June), and contracted by 7.5% in the second quarter.

However, the financial stability report released on Wednesday indicated that the lending solutions of Indian banks have improved. In the last financial stability report released in July, the Reserve Bank of India predicted that even under the “baseline scenario”, non-performing loans could rise to 9.8% by March 2022.

The Governor of the Reserve Bank of India Shakti Kantadas wrote in the preface of the document: “As highlighted in this issue of the Financial Stability Report, Indian financial institutions remain resilient during the pandemic, and the financial market is generally stable. Policies and regulations Support acts as a buffer.” Released on Wednesday.

Advertisement

…Thank you for making Scroll.in India’s most influential purely digital news organization.

We request that you donate to the Scroll Ground Reporting Fund to support our award-winning journalism. The fund will ensure that we can continue to ask questions that need to be asked, investigate what needs to be discovered, and record what must be recorded.

Complete News Source : Scroll.in

Advertisement

india

Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Published

on

By

Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

Advertisement

ALSO READ- At 65.2%, Maharashtra records highest voter turnout since 1995 assembly election

Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

Advertisement

“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

Advertisement

Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

Group Media Publications
Entertainment News Platforms – anyflix.in      
Construction Infrastructure and Mining News Platform – https://cimreviews.com/
General News Platform – https://ihtlive.com/

Continue Reading
Anyskill-ads

Facebook

Trending