By Dr K Srinivasa Rao The recent roll-out of two sets of directions by the Reserve Bank of India, Transfer of Loan Exposures and Securitization of Standard Assets, are set to galvanise the credit flow in the financial sector, more so in the banking system. The new avenues permitting secondary sale of bank loans can […]
Paving the way for a major clean-up of bad loans in the banking sector, the Cabinet recently cleared a guarantee programme for securities to be issued by the newly incorporated ‘bad bank’. The goal of a bad bank is to optimise asset utilisation, free up capital, and empower banks to effectively lend. Bad banks must […]
It, however, said net NPAs and credit provisions will subsequently trend lower in 2021-22 as banks have reported strong collections on their loan portfolio with most of them reporting collections of over 90 per cent.