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INDIANB - Indian Bank News Story

₹112.9 -1.0  -0.8%

Last Trade - 07/05/21

Sector
Financials
Size
Mid Cap
Market Cap £1.25bn
Enterprise Value £2.74bn
Revenue £1.95bn
Position in Universe 249th / 3108

GRAPHIC-The woes of India's state banking sector in four charts

Wed 30th May, 2018 2:05pm
By Subrat Patnaik and Devidutta Tripathy MUMBAI, May 30 (Reuters) - India's state-run banks posted a combined loss of 853.7 billion rupees ($12.65 billion) in the fiscal year ended this March, according to data compiled by Reuters, as their provisions for bad loans surged following stricter central bank rules. All but two of the 21 banks in which India owns a majority plunged into losses in the March quarter after the Reserve Bank of India in February withdrew half a dozen loan restructuring schemes and put in place other curbs. urn:newsml:reuters.com:*:nL3N1ST232 For the fourth quarter alone, total losses in the state-run banking sector were 626.81 billion rupees ($9.30 billion) - negating modest profits at Indian Bank INBK.NS and Vijaya Bank VJBK.NS . To be sure, state banks as a whole posted losses in the prior two years too, hurt mostly by bad loans. But the 2017/18 loss is the highest ever in their history. Gross non-performing loans at the 21 banks rose about 15 percent from three months earlier to 8.96 trillion rupees ($133 billion) at the end of March. Bad loans as a percentage of total loans also rose at most banks, with IDBI Bank IDBI.NS clocking the highest bad-loan ratio of 27.95 percent, followed by Indian Overseas Bank's IOBK.NS 25.28 percent. The bad-loan surge and the record losses come at a time when New Delhi has drawn up a 2.11 trillion-rupee, two-year, plan to recapitalise the state lenders which account for two-thirds of the country's banking assets in its efforts to kick-start lending growth. However, some fear that most of the banks will be left with no funds for growth after meeting provision requirements and higher capital ratios mandated by global Basel III banking rules to be fully effective by March 2019. ($1 = 67.4850 Indian rupees) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India's State Banks Plunge Into Losses In 2017/18 https://tmsnrt.rs/2KP0zbY Indian State Banks' loss/profit in the past five years https://tmsnrt.rs/2JeK2Rn Gross Non-Performing Assets at India's state banks https://tmsnrt.rs/2L6C61P Indian State Banks' Core Capital Ratio as of March 31, 2018 https://tmsnrt.rs/2KKElYu ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Subrat Patnaik and Devidutta Tripathy Editing by Euan Rocha and Adrian Croft) ((subrat.patnaik@thomsonreuters.com; +91 22 6180 7065; Reuters Messaging: subrat.patnaik.thomsonreuters.com@reuters.net))
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