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Why did they need to make such a high level of provisioning. Then, they will be unable to make large provisions to bring down their net NPAs. This means those small depositors who keep their money in banks should not pay any tax at all as the tax payers money has Internet Not Available. The average price of 80 per cent of government bonds was Rs His Twitter handle is tamalbandyo.

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On that basis, Indian banks seem to be quite healthy now. This matched the income from sale of investment Rs 10, During that year, these banks made a provision of Rs 10, This is because Indian banks have been able to reduce the net NPAs by making huge provisions with the money made on their bond portfolios. The pile was raised by Rs 5,

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It'll just take a moment. Since the beginning of , the yield on year gilts has increased by around 1. For instance, a bank with a bond portfolio of average maturity of two years will be less hurt compared with a bank with a bond portfolio of longer maturity. Despite that, its net NPA dropped from 3.

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Description: But with the rise in interest rates, banks' net NPA numbers will go up. Let's take a look at the balance sheet of some of the big banks. This matched the income from sale of investment Rs 10, He is also the author of Sahara. What do you think about the story. The other and more serious issue is that the reversal in interest rate movement will expose the vulnerability of a sector that was touted as strong and resilient. Banks need to return to their bread and butter business - giving loans - with a vengeance. Powered by More Guest Columns. For instance, a bank with a bond portfolio of average maturity of two years will be less hurt compared with a bank with a bond portfolio of longer maturity. Of the government securities valued at Rs 7,04, crore Rs 7,
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