Respected Sir,
I would like to bring your kind attention on the Assets Quality of Indian Banks, which are deterioting & downgrading of Banks by Various Rating Agencies. These below steps will work well to protect the Public Money-
1.CIBIL report must for every Borrower & the Borrower must have Unique CIG no before availing credit from FI & it must be cross-checked by the respective FI.
2. KYC may be Updated by any Outside Agency (ie NSDL) just like what is happening in Mutual Fund Industry. The Unique Customer ID may be same for the account holder/borrower irrespective of Banks any may be permitted to Open Multiple Deposit is accounts & Borrow from Various Financial Institutions. It may be based on IT_PAN.
3. Credit Repository may be formed to Share the Details of Borrower on a single Web-portal within Financial Institutions .This will check the Willful Defaulters in coming Days.
4.All the Disbursement of Loan proceeds must be routed through RTGS/NEFT( above `50,000.00).T
These are the few steps ,the list is vast,but will be fruitfull to avoide the Loot of Public Money by Willful Defaulters.
Yours Faithfully
SKS
@ Bankura University(Proposed)Bankura,We
India Inc credit quality slips, worse coming: CRISIL--Business Standard
The power, road transport and construction sectors witnessed highest number of downgrades in first half of the year
Ratings agency CRISIL said on Monday that the credit quality of India Inc was on a "slippery wicket" due to a demand slowdown,liquidity issues and higher interest rates. As a consequence, banks might see further slippages in their already deteriorating asset quality.
During the first half of the financial year, ended September, the agency downgraded as many as 478 companies, compared to 417 upgrades. It attributed a majority of the downgrades to demand slowdown and liquidity issues.
"Eighty six per cent of the downgrades were due to demand slowdown and stretch in liquidity caused by delays in receivables," it said.
Power, road transport and construction sectors witnessed the highest number of downgrades, it said.
The situation will remain grim due to continuance of the two factors and high interest rates. "Going forward, demand and adequacy of funding will drive credit quality of companies. The downgrades will continue to outnumber upgrades in the near term and the intensity of downgrades may even increase," it said.
Cautioning that the ongoing stress was likely to percolate down to the banks' asset quality, CRISIL senior director Pawan Agrawal said gross non-performing assets (NPAs) of the system would grow to 4.4 per cent by the end of the financial year, up from the 3.3 per cent in the same period of 2012-13.
Systemically weak assets -which it computes as gross NPAs plus 30 per cent of the restructured assets - will slip to 5.7 per cent from 4.3 per cent in FY13, it said.
About 30 per cent of the restructured standard assets, excluding the exposure to state power utilities, have a chance to slip into NPAs over the next two years on account of the "L-shaped economic growth trajectory expected", it said.
The power, road transport and construction sectors witnessed the highest number of downgrades in the first half of the year.
An analysis of 2,481 investment-grade firms had shown that a fourth of these were "highly vulnerable" to demand slowdown, while a sixth might witness liquidity constraints.
During the first half of the financial year, ended September, the agency downgraded as many as 478 companies, compared to 417 upgrades. It attributed a majority of the downgrades to demand slowdown and liquidity issues.
"Eighty six per cent of the downgrades were due to demand slowdown and stretch in liquidity caused by delays in receivables," it said.
Power, road transport and construction sectors witnessed the highest number of downgrades, it said.
The situation will remain grim due to continuance of the two factors and high interest rates. "Going forward, demand and adequacy of funding will drive credit quality of companies. The downgrades will continue to outnumber upgrades in the near term and the intensity of downgrades may even increase," it said.
Cautioning that the ongoing stress was likely to percolate down to the banks' asset quality, CRISIL senior director Pawan Agrawal said gross non-performing assets (NPAs) of the system would grow to 4.4 per cent by the end of the financial year, up from the 3.3 per cent in the same period of 2012-13.
Systemically weak assets -which it computes as gross NPAs plus 30 per cent of the restructured assets - will slip to 5.7 per cent from 4.3 per cent in FY13, it said.
About 30 per cent of the restructured standard assets, excluding the exposure to state power utilities, have a chance to slip into NPAs over the next two years on account of the "L-shaped economic growth trajectory expected", it said.
The power, road transport and construction sectors witnessed the highest number of downgrades in the first half of the year.
An analysis of 2,481 investment-grade firms had shown that a fourth of these were "highly vulnerable" to demand slowdown, while a sixth might witness liquidity constraints.
No comments:
Post a Comment