- GROSS NPA MAY RISE TO Rs. 9.5 LAKH CRORE BY MARCH 2018: Gross Non-Performing Assets (NPAs) in Indian banks are expected to rise to Rs. 9.5 lakh crore by March 2018, from Rs. 8.00 lakh crore last year. This is as per ASSOCHM-Crisil joint study. High level of stressed assets in the banking industry provides enormous opportunity for Asset Reconstruction Companies (ARCs) which play an important role in NPA resolution process. But owing to capital constrains, growth of ARCs is expected to come down significantly.
- PHYSICAL BANKS WILL BE IRRELEVANT IN NEXT 3 YEARS IN INDIA: Niti Aayog CEO Mr. Amitabh Kant opines that physical banks will be irrelevant in the next three years as data consumption growth and data analytics are likely to further boost financial inclusion. According to Mr. Kant, India will have more than a billion biometrics and smart phones due to which new bank model will come out, which will phase out physical banking.
- GOVERNMENT MULLS THE IDEA OF 100% FDI IN BANKING SECTOR: The Central government is mulling to allow 100% Foreign Direct Investment in banking sector. The Finance Ministry and IBA are presently discussing and assessing the hike in FDI cap in banking sector from 74% to 100%. The government may also hike FDI in Public Sector Banks ( PSBs) to 49%.
- AGRICULTURE BAD LOANS JUMP BY 23%: Banks have witnessed a spike in agriculture bad loans of Rs. 11,400 crore to cross Rs. 60,000 crore. Demonetization and farm loan waivers have added to the woes of the banks. NPAs rose over 23% from Rs. 48,000 crore in 2016 to Rs. 60,000 crore in 2017. Bad Loans in agriculture sector have jumped 142.74% from Rs. 24,800 crore in fiscal 2012, indicating distress in this sector in the last 5 years.
- ONGC TIES UP WITH 3 BANKS FOR Rs. 18,000 CRORE LOAN FOR HPCL TAKEOVER: Oil & Natural Gas Corporation (ONGC) has tied up with three banks to avail loan up to Rs. 18,000 crore to part finance its Rs. 36,915 crore acquisition of Hindustan Petroleum Corp Ltd. (HPCL). It has entered into loan agreements with Punjab National Bank, Bank of India and Axis Bank Ltd for loans of Rs.18,060 crore for this acquisition.
- SBI SEES BAD LOAN PROVISIONS AS BIGGEST CHALLENGE: State Bank of India sees provisioning for bad (NPAs) loans as the biggest challenge for Indian Banking system even as credit growth is reviving. Mr. Rajnish Kumar, the present Chairman of SBI says that whatever process they resort to for the resolution of NPAs, there will always be a gap in the provisioning and that is precisely where the support from the government is required.
- AFFORDABLE HOUSING NOW A MAJOR THEME AMONG PEs: Driven by the demand and government incentives, majority of residential launches in 2017 were in the affordable and mid-range housing projects. Because of this, Private Equity Firms’ interest has tilted more towards affordable housing and is expected to increase in future also. Affordable housing has emerged as a significant theme among PE-RE (Private Equity-Real Estate) investors, especially in the second half of 2017.
- INDIA 5TH MOST ATTRACTIVE MARKET FOR INVESTMENTS: India has become the 5th most attractive market for investments and business optimism is at record high levels globally. But cyber security and climate change have become areas of concern for CEOs. This is as per the annual global CEO survey done by consultancy giant; PwC. Previously India was in the 6th
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