TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    133 Killed In Air India Flight Crash

    At Least 133 Killed in Air India Crash Near Ahmedabad; President Murmu, PM Modi Offer Condolences

    ahmedabad plane crash

    What is a Plane’s Black Box and How Does It Help in Crash Investigations?

    boeing shares plummets

    Boeing Stock Drops Sharply After Air India 787 Dreamliner Crashes Near Ahmedabad

    gujarat plane crash

    Air India Flight to London Crashes Near Ahmedabad Airport; 40 Feared Dead

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers

    11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers, DigiLocker, UMANG

    India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO

    India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO

    real estate

    India Retains Top Spot Among Global Investment Hubs for Land and Development Projects

    How a Compound Interest Calculator Can Boost Your Returns in India?

    How a Compound Interest Calculator Can Boost Your Returns in India?

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    congress leader likens operation sindoor to a computer game

    Congress’ Patole terms Operation Sindoor as ‘Video Game’, Sparks Controversy

    India-Russia Pact on the Su‑57 as a Leap of Strategic Trust

    From Buyer to Partner: What the Su‑57 Means for India’s Military Autonomy Inside Russia’s Su‑57 Gamble with India

    Dassault and Tata to Begin Rafale Fuselage Production in India

    Dassault and Tata to Begin Rafale Fuselage Production in India, Marking Major Milestone in Defence Manufacturing

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Why the US Inviting Pakistan’s Army Chief Matters

    Why the US Inviting Pakistan’s Army Chief Matters — And What It Could Mean for the Neighbourhood?

    Pakistan hikes defence Budget, prioritizes ammunition over growth

    Pakistan Hikes Defence Budget by 20 PC , Prioritizes Ammunition Over Growth

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    ‘Canadian PM Mark Carney Needs to Handle Khalistan Issue Diplomatically’

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Bobby Mukkamala Becomes 1st Indian-American President of AMA

    Bobby Mukkamala Becomes First Indian-American President of the American Medical Association

    The Vedic Ethos: A Civilization of Knowledge and Inquiry

    From Rigvedic Wisdom to Modern Decay: How Islamisation Crushed a Knowledge Civilization

    Ram Mandir Pran Pratishtha 2.0

    Thousands Gather in Ayodhya for Ram Darbar Pran Pratishtha Ceremony

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Bangalore: High Court of Karnataka in Bangalore. (Photo: IANS)

    RCB Moves HC to Quash FIR in Bengaluru Stampede Case, Cites Govt Approval for Celebration

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    In December 2024, D. Gukesh Dommaraju, then just 18, became the youngest undisputed World Chess Champion

    The Gukesh Effect: How a Teen Grandmaster Is Reshaping Indian Chess and Reclaiming Its Ancient Legacy

    Critical Dimensions for Evaluating Procurement Software Providers

    Critical Dimensions for Evaluating Procurement Software Providers

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    133 Killed In Air India Flight Crash

    At Least 133 Killed in Air India Crash Near Ahmedabad; President Murmu, PM Modi Offer Condolences

    ahmedabad plane crash

    What is a Plane’s Black Box and How Does It Help in Crash Investigations?

    boeing shares plummets

    Boeing Stock Drops Sharply After Air India 787 Dreamliner Crashes Near Ahmedabad

    gujarat plane crash

    Air India Flight to London Crashes Near Ahmedabad Airport; 40 Feared Dead

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers

    11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers, DigiLocker, UMANG

    India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO

    India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO

    real estate

    India Retains Top Spot Among Global Investment Hubs for Land and Development Projects

    How a Compound Interest Calculator Can Boost Your Returns in India?

    How a Compound Interest Calculator Can Boost Your Returns in India?

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    congress leader likens operation sindoor to a computer game

    Congress’ Patole terms Operation Sindoor as ‘Video Game’, Sparks Controversy

    India-Russia Pact on the Su‑57 as a Leap of Strategic Trust

    From Buyer to Partner: What the Su‑57 Means for India’s Military Autonomy Inside Russia’s Su‑57 Gamble with India

    Dassault and Tata to Begin Rafale Fuselage Production in India

    Dassault and Tata to Begin Rafale Fuselage Production in India, Marking Major Milestone in Defence Manufacturing

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Why the US Inviting Pakistan’s Army Chief Matters

    Why the US Inviting Pakistan’s Army Chief Matters — And What It Could Mean for the Neighbourhood?

    Pakistan hikes defence Budget, prioritizes ammunition over growth

    Pakistan Hikes Defence Budget by 20 PC , Prioritizes Ammunition Over Growth

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    ‘Canadian PM Mark Carney Needs to Handle Khalistan Issue Diplomatically’

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Bobby Mukkamala Becomes 1st Indian-American President of AMA

    Bobby Mukkamala Becomes First Indian-American President of the American Medical Association

    The Vedic Ethos: A Civilization of Knowledge and Inquiry

    From Rigvedic Wisdom to Modern Decay: How Islamisation Crushed a Knowledge Civilization

    Ram Mandir Pran Pratishtha 2.0

    Thousands Gather in Ayodhya for Ram Darbar Pran Pratishtha Ceremony

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Bangalore: High Court of Karnataka in Bangalore. (Photo: IANS)

    RCB Moves HC to Quash FIR in Bengaluru Stampede Case, Cites Govt Approval for Celebration

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    In December 2024, D. Gukesh Dommaraju, then just 18, became the youngest undisputed World Chess Champion

    The Gukesh Effect: How a Teen Grandmaster Is Reshaping Indian Chess and Reclaiming Its Ancient Legacy

    Critical Dimensions for Evaluating Procurement Software Providers

    Critical Dimensions for Evaluating Procurement Software Providers

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

An NPA-ridden Indian banking sector has been “stabilised” by PM Modi, Moody’s says

Abhinav Singh by Abhinav Singh
21 October 2021
in Economy
Banks, Government, India, Indian, Moody's, banking
Share on FacebookShare on X

Global credit rating agency Moody’s has finally got rid of its blinkers and revised the outlook for the Indian banking sector to stable from negative. The report stated that “the quality of corporate loans has improved, indicating that banks have recognised and provisioned for all legacy problem loans in this segment.”

Moreover, in the report titled, “Banking system outlook – India: Stabilizing asset quality and improved capital drive outlook change to stable”, the agency remarked that negative factors associated with the banks had receded. 

RelatedPosts

11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers, DigiLocker, UMANG

‘Canadian PM Mark Carney Needs to Handle Khalistan Issue Diplomatically’

Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

Load More

The report read, “The pickup in economic activity will drive credit growth, which we expect to be 10%-13% annually. Weak corporate financials and funding constraints at finance companies have been key negative factors for banks but these risks have receded,” 

After upgrading its India outlook to stable earlier this month, Moody's has now also upgraded its outlook for the banking sector:

"The quality of corporate loans has improved, indicating that banks have recognized and provisioned for all legacy problem loans in this segment." pic.twitter.com/vWJgmkex3n

— Nirmala Sitharaman Office (@nsitharamanoffc) October 20, 2021

It further added, “We have revised the outlook for the Indian banking system to stable from negative. The deterioration of asset quality since the onset of the coronavirus pandemic has been moderate, and an improving operating environment will support asset quality. Declining credit costs as a result of improving asset quality will lead to improvements in profitability,”

Reportedly, the agency believes that aided by a stable banking sector, India’s economy will continue to recover miraculously in the next 12-18 months, with GDP growing 9.3 per cent in the fiscal year ending March 2022 and 7.9 per cent in the following year. 

Indian Banking sector – a mess  

The Indian banking sector was a mess when the Modi government took charge. Despite the best efforts of the government, the banking sector in the country, dominated by the public sector banks (PSBs), improved a little. To solve the expanding problem of NPAs (Non-Performing Assets) – a legacy generously passed on by the previous UPA regimes, the Modi government, in close consultations with the RBI, brought the Insolvency and Bankruptcy Code, 2016. The measure was a huge success in solving corporate bankruptcy in India.  

The reason behind this dim performance of the Indian banking sector is the domination of public sector banks (PSBs) which account for around 70 per cent of the country’s banking industry. It has been almost five decades since Indira Gandhi nationalised banking in 1969, intending to improve lending in ‘strategic areas’. However, since then the banking story of the country has only been in a downward spiral.

Read More: Rs 37,400 crore: IBC marks the biggest recovery of NPAs this year

The main reason for NPA accumulation is nonpayment by the banks’ clients. In simpler terms, it is like a shopkeeper giving a customer some goods on credit, and the customer is not able to pay back to the shopkeeper. 

Most of the nonperforming assets in India are loans by government banks because the management of these banks gives loans to companies without checking the viability of the project or the ability of the client to pay back. However, as Moody’s stated, the problem has now been taken care of by the effective government of PM Modi. 

Reducing Non Performing Assets

Before the Modi government came to the power in 2014, the total NPAs stood around 52 lakh crore. The simplified process under the IBC has reduced Non performing assets (NPAs) to 8.34 lakh crores by March to 31 NPAs this year. Insolvency proceedings normally used to take around 4.3 years on an average in India, which is way slower than 1 year in the United Kingdom and 1.5 years in the USA. The IBC has not just reduced this period, but also made India a friendlier destination for companies looking to invest in the country.  

Read More: How the Insolvency and Bankruptcy Code has helped India reduce its Non Performing Assets 

Reportedly, last month, thanks to IBC, the lenders of Dewan Housing Finance Corporation Ltd (DHFL), announced that it was about to receive the first instalment of their dues. The total amount recovered in the first phase will be Rs 37, 400 crores.

Privatizing Public Sector Banks 

With the public banks putting tremendous pressure on the exchequer the government is even planning to privatise a few of them — starting with IDBI bank. Recently, RBI announced that it will be creating a new security clearance framework for screening potential bidders of PSBs. The process would be different from the privatisation of any other PSU as more restrictions and measures will be embedded in the process.

As reported by TFI, earlier this year, Union Finance Minister Nirmala Sitharaman in her Union Budget speech had announced that the central government would reduce its stake in two public sector banks, apart from IDBI Bank. 

The Business Standard report states that the Central Bank of India and IOB may be privatised. A high-level panel headed by Cabinet Secretary Rajiv Gauba had recommended the names after NITI Ayog identified suitable candidates for the privatisation process. 

Moreover, to expedite the process, the government is mulling granting Voluntary Retirement Scheme (VRS) to the employees of the said banks. It will help the government get rid of the extra flab, making the banks leaner and trimmer, ready for instant takeover by the private sector. Moreover, it would create vacancies which could be filled by the youth of the country, thereby, generating employment. 

Even after a devastating second wave of the pandemic, the Modi government managed to wade through the testing waters and is now reaping the rewards for it. The Banks are in better health and the best part is that there is still a whole lot of room left for the government to bring its sweeping reforms. 

Tags: banks NPAsDHFLibcIndian Banking SectorMoody's RatingsNarendra ModiNirmala SitharamanNPA
Share131TweetSend
Previous Post

On this Valmiki Jayanti, let us strive to read the original Valmiki Ramayan and not the corrupted newer versions

Next Post

The reinvigorated India-Israel-UAE bonhomie is a massive jolt to Turkey and Pakistan

Related Posts

11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers
Economy

11 Years of Modi Govt: Making Welfare Seamless with Direct Benefit Transfers, DigiLocker, UMANG

12 June 2025

Since 2014, the government under Prime Minister Narendra Modi has placed a strong focus on digital innovation as a...

India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO
Economy

India Ranks 2nd Globally in Social Security Coverage for the Poor, Says ILO

11 June 2025

India has recorded a landmark achievement in expanding social security coverage, now reaching over 940 million people, according to...

real estate
Economy1

India Retains Top Spot Among Global Investment Hubs for Land and Development Projects

11 June 2025

India has reaffirmed its position as one of the world's most attractive destinations for cross-border investment in land and...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

From parliament to primetime: smriti irani is Tulsi again!

From parliament to primetime: smriti irani is Tulsi again!

00:03:24

Islam is on the track to become the fastest growing religion in the world.

00:09:34

BJP, bakrid and the cow. CM Manik Saha in eye of the storm.

00:03:56

Pakistan needs money from IMF to feed their people

00:15:20

Vacate PoK and more: Steps Pakistan needs to take to avoid Indian military action

00:06:36
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited