1 / 9

Growing NPAs in Banks: Growing NPAs in Banks: Efficacy of Ratings, Accountability &

Growing NPAs in Banks: Growing NPAs in Banks: Efficacy of Ratings, Accountability & Transparency of Credit Rating Agencies 31st May 2014.

calix
Download Presentation

Growing NPAs in Banks: Growing NPAs in Banks: Efficacy of Ratings, Accountability &

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Growing NPAs in Banks: Growing NPAs in Banks: Efficacy of Ratings, Accountability & Transparency of Credit Rating Agencies 31st May 2014 Presented by : Jagannadham Thunuguntla, Strategist & Head of Research SMC Global Securities

  2. Big Mistake by US Banks – Unacceptable leverage levels 33 : 1 28 : 1

  3. Acceptable Solvent NPA Acceptable Solvent NPA : 3% of the assets

  4. Collapse of Lehman Brothers

  5. Average Indian Bank’s Leverage Average Indian Bank’s Leverage : 10 times

  6. Solvent NPA for Indian banks Solvent NPA : 10% of the Assets

  7. Gross NPAs of Indian Banks Percentage (%)

  8. Factors Contributing to NPA’s • Poor Credit discipline • Inadequate Credit & Risk Management • Diversion of funds by promoters • Funding of non-viable projects • Inadequate mechanism to gather and • disseminate credit information amongst commercial banks

  9. SMC Global : Thanks You! Thank you ! SMC Global Securities Limited Corporate Office 11 / 6 B, Ground floor, Shanti Chambers, Pusa Road New Delhi - 110005INDIA Tel:   +91 011 30111 000Fax:  +91 11 2586 3606www.smcindiaonline.com Disclaimer : This report is for information purposes only. Due care has been taken in compilation of the presentation to ensure that the information is accurate to the best of our knowledge and belief. The information contained in the presentation has been obtained from reliable and publicly available sources. SMC Global Securities Ltd, makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions there from.

More Related