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

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3 years ago

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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.

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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.

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Virat Kohli pays tribute to Ratan Tata, Jay Shah ‘deeply saddened’ by veteran industrialist’s demise

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3 weeks ago

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October 10, 2024

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Virat Kohli pays tribute to Ratan Tata, Jay Shah ‘deeply saddened’ by veteran industrialist’s demise

Tributes continue to pour in for Ratan Tata, with Virat Kohli and Jay Shah taking to their social media accounts to bid farewell to the industrialist.

Former Indian captain and batting legend Virat Kohli paid a touching tribute to Ratan Tata, the legendary business tycoon, who passed away on Wednesday night. Tata, a Padma Vibhushan recipient, was undergoing treatment in intensive care since Monday but breathed his last in Mumbai, leaving a profound impact on many across the nation.

Kohli expressed his condolences through his Instagram account on Thursday morning, sharing a heartfelt message along with a photo of the late industrialist.

Tata’s contribution to business, society, and philanthropy has been widely acknowledged, and his passing marks the end of an era.

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The Board of Control for Cricket in India (BCCI) secretary, Jay Shah, also conveyed his sorrow, stating, “Deeply saddened by the loss of Shri Ratan Tata Ji. His leadership, integrity, and dedication to society set a remarkable standard for legacy. My heartfelt condolences to his loved ones. Rest in peace, Sir.” Shah’s words reflect the collective grief of a nation that has long admired Tata’s contributions to the country.

BCCI’s tribute

Additionally, the BCCI issued a statement about his demise.

“The BCCI expresses its deepest sorrow and joins the nation in mourning the passing of Shri Ratan Tata ji. His invaluable contributions across diverse fields have been instrumental in shaping India’s growth and success story.

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His extraordinary legacy, founded on the principles of passion, empathy, visionary leadership, innovation, and excellence, will continue to inspire and guide future generations for years to come,” the statement read.

Ratan Tata, born on December 28, 1937, in Mumbai, embarked on his journey with the Tata Group in 1962 as a young executive. Over the decades, he transformed the group into a global conglomerate. His work was acknowledged with India’s second-highest civilian honour, the Padma Vibhushan, in 2008, and he received numerous accolades, including honorary doctorates from prestigious institutions in India and abroad.

Tata is survived by his family, including brothers and sisters Simone Tata, Jimmy Tata, Noel Tata, Aloo Tata, Shireen Jejeebhoy, Deanne Jejeebhoy, Leah Tata, Maya Tata, Neville Tata, Manasi Tata, Jamset Tata, Tiana Tata, and others, as mentioned in a family statement.

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