New Delhi: For every Rs 100 parked in shares of public sector banks, investors carry the burden of Rs 150 as bad loans, which have cumulatively ballooned to Rs 4 lakh crore or 1.5 times the market value of these lenders.
In comparison, bad loans of private sector banks are just about 6.6 per cent of their total valuation.
In case of PSU banks, if loans that face the risk of being declared NPAs (Non Performing Assets) going ahead are also taken into account, their overall stressed advances are estimated to be almost double at over Rs 8 lakh crore.
The problem appears less acute at private sector banks as their gross NPAs are only about one-eighth at about Rs 46,000 crore, which is also well below their total market value.
The Reserve Bank has set March 2017 as deadline for banks to clean up their balance sheets, forcing them to promptly disclose NPAs, take remedial measures and also make adequate provisions in their financial statements. The banks have began complying with effect from their latest set of financial results, which are for the quarter ended December 31, 2015.
The gross NPAs of banking sector are estimated at over 5 per cent of total loans, while overall stressed assets (including declared and potential bad loans) are at about 11 per cent.
An analysis of their latest quarter results shows that the cumulative gross NPAs of 24 listed public sector banks, including market leader SBI and its associates, stood at Rs 3,93,035 crore as on December 31, 2015.
This is nearly 1.5-times of their total market value, which currently stands at Rs 2,62,955 crore.
This also marks a rise of over 50 per cent from their gross NPAs totalling Rs 2,61,918 crore a year ago.
As per RBI, an asset becomes non-performing when it ceases to generate income for the bank. The banks need to declare a loan as NPA which remains overdue for more than 90 days.
Except for State Bank of India (SBI), and a few smaller ones, all listed public sector banks have gross NPAs in excess of their market capitalisation. In most cases, the quantum of bad loans is more than double the market value, while some lenders have gross NPAs as high as four or five-times of their respective market valuations.
In comparison, most private sector banks have gross NPAs well below their market values, although the quantum of bad loans have risen for them as well in a big way.
The gross NPA of 16 listed private sector lenders stood at Rs 46,271 crore as on December 30, 2015. This compares with their total market value of over Rs 7 lakh crore.
Taken together, the cumulative gross NPAs of all listed banks – public and private – has risen to Rs 4.4 lakh crore, while their total market value stands at Rs 9.6 lakh crore.
@Agency report.
New Delhi: In a bid to attract more international talent, the prestigious IITs for the first time are planning hold their entrance tests in Singapore, UAE, Ethiopia and SAARC nations next year to select foreign students for undergraduate and postgraduate courses.
At recent a meeting between officials of HRD and External Affairs ministries, eight countries including Afghanistan, Bangladesh, Nepal, Pakistan and Sri Lanka (all SAARC member nations), Ethiopia in Africa, Singapore and Dubai (UAE) have been zeroed in on for holding entrance tests for foreign nationals from next year onwards.
“The entrance tests to the IITs abroad have been held till now only to admit Indian nationals. This is for the first time that it has been planned to admit foreign students through tests held abroad. It is aimed that the plan would be operationalised from the JEE/GATE exams to be conducted in 2017,” a senior HRD Ministry official told PTI.
The students will be selected through a common entrance exam which would be administered by the IIT with the help of Indian missions in these countries.
Officials, however, added that seats to be offered to foreign nationals would be supernumerary or additional in nature and would not reduce those available to Indian nationals at the 18 IITs.
The fee applicable in the case of foreign students will also be more as the subsidised fee which Indians pay would not be applicable to them.
To facilitate these foreign students, MEA will consider giving them research visa for the duration of the programme rather than one year at a time, officials added.
While the test is to be held in 2017, the outreach programme for the exercise would begin from August this year and will be conducted in all these eight countries. IIT Mumbai has been asked to prepare the necessary information material for this outreach. It would include details of the tests, the courses and FAQs. A web portal may be created for this purpose, sources said.
The Indian Council for Cultural Relations (ICCR) will be the nodal agency on behalf of the Ministry of External Affairs (MEA) for these tests.
Earlier, IIT-M Director had prepared a report on comprehensive system to attract international students to the IITs. After the report was prepared, Khakhar was asked to prepare a detailed plan for conducting JEE and GATE exams abroad.
It is learnt that the government is keen on more foreign students studying at IITs as it could boost their international academic rankings.
@Agency report.
The BCCI on Friday unanimously decided to file an affidavit in the Supreme Court pointing out the “anomalies and difficulties” in implementing the Justice Lodha Committee recommendations on the restructuring of the cricket board. It was decided in the Special General Meeting of the BCCI that secretary Anurag Thakur will file an affidavit on behalf of the BCCI in the apex court.
The Lodha Committee has recommended wide ranging sweeping reforms in the BCCI including having only one vote per state, age cap of its officials, no simultaneous posts in state and national body along with restrictions on advertisements in televised cricket matches. “The Members authorised the Honorary Secretary BCCI to file an affidavit in the Hon’ble Supreme Court on behalf of the BCCI pointing out the anomalies and difficulties encountered in implementation of Hon’ble Justice Lodha Committee’s recommendations,” the BCCI said in a release after the meeting.
@Agency report.