Przejdź do trybu offline z Player FM !
Why banks write off big loans | In Focus podcast
Manage episode 348554203 series 2606066
In the last ten years, Indian banks have written off loans worth about ₹10 lakh crore. This helped the banks reduce their NPAs by 50%. But tellingly, they were able to recover only 13% of the loans written off – a very poor rate that raises many questions, for it is generally not easy to get a loan from a bank, and banks have many options for recovering loans.
Another interesting aspect of the write-offs is that the bulk of the NPAs were from big corporate borrowers, with the NPA rates among smaller borrowers such as microenterprises being much lower. So, why do banks write off big ticket loans? Why is the recovery rate so poor? And how does the combination of massive write-offs and poor recovery rate affect taxpayers?
825 odcinków
Manage episode 348554203 series 2606066
In the last ten years, Indian banks have written off loans worth about ₹10 lakh crore. This helped the banks reduce their NPAs by 50%. But tellingly, they were able to recover only 13% of the loans written off – a very poor rate that raises many questions, for it is generally not easy to get a loan from a bank, and banks have many options for recovering loans.
Another interesting aspect of the write-offs is that the bulk of the NPAs were from big corporate borrowers, with the NPA rates among smaller borrowers such as microenterprises being much lower. So, why do banks write off big ticket loans? Why is the recovery rate so poor? And how does the combination of massive write-offs and poor recovery rate affect taxpayers?
825 odcinków
Tất cả các tập
×Zapraszamy w Player FM
Odtwarzacz FM skanuje sieć w poszukiwaniu wysokiej jakości podcastów, abyś mógł się nią cieszyć już teraz. To najlepsza aplikacja do podcastów, działająca na Androidzie, iPhonie i Internecie. Zarejestruj się, aby zsynchronizować subskrypcje na różnych urządzeniach.