India

Nonperforming loans are expected to hit 13-14% of total loans for FY2020-21.

Both segments comprised 73% of incremental credit in April.

Gross non-performing loans drove the increase in credit.

A final decision could be made in H2 of India’s fiscal year.

They are pitching for an asset reconstruction company to buy NPLs.

The COVID crisis has resulted in an unprecedented disruption to the economic activity, and will lead to major changes in operations of most industries, including banks. Given below are some views on how banks will need to adjust to the new reality once situation stabilises and economic activity starts resuming normal operations. While this note has been made keeping India in mind, most conclusions will be valid for other emerging economies as well.

In 2019, local firms raised $5.1b in total from 154 deals.

This is to ensure that the government’s relief package reaches the poor.

It reached a 17% CAGR to $319.1b in 2018.

The Indian central bank took over Yes Bank for not having enough capital.

Karnad has been associated with the property and mortgage industry for over 40 years.

Meeting the deadlines will be a challenge given the domestic funding crunch.

Foreign annualised ROEs grew 9.9% in the six months until end-September.

The government has waived merchant fees on payments through RuPay.

Total number of card payments quadrupled from 2 billion in 2015 to 7.8 billion in 2019.

NBFCs and HFCs have reduced disbursement rates.