RBI last month scrapped numerous loan restructuring programmes including Corporate Debt Restructuring, Sustainable Structuring of Stressed Assets or S4A, Strategic Debt Restructuring, and Flexible Structuring of Existing Long Term Project Loans.
It even disbanded the Joint Lenders Forum designed to resolve potential bad debts.
Besides these changes, there would be fresh slippages adding to the woes, said another top official at a public sector bank.
Hit hard by Nirav Modi scam, state-owned Punjab National Bank (PNB) alone would have to make provision for fraud losses to the tune of Rs 145 billion.
"PNB has apprised that the total loss reported by it due to frauds was Rs 3.41 billion in the financial year (FY) 2015-16, Rs 26.33 billion in FY 2016-17, and Rs 145 billion (including contingent liability) in FY 2017-18 (till date)," Minister of State for Finance Shiv Pratap Shukla said in a written reply to the Rajya Sabha on March 2o.
"The total amount involved is reported as Rs 139 billion, which includes a report dated February 22, 2018 on additional amount involved of Rs 12.51 billion," he had said.
If advance tax numbers for the fourth quarter are anything to go by, it gives a clear indication of the muted growth for the quarter.
Both State Bank of India and PNB has deposited significantly lower advance tax during the quarter. Even the private sector peers Axis Bank and ICICI Bank have reported lower advance tax payout.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.