By Accommodation Times News Service
Banks can face continue to face tough times for yet another quarter as borrowers , facing business downswing queue up with loan restructuring requests.
Two leading banks like Bank of Baroda and Union Bank expect to restructure loans worth Rs 4,800crore in the first quarter alone as distressed borrowers approach them for debt recast. Another leading bank, Bank of India said it may have to restructure worth Rs 500crore. Bank of Baroda chairman Mr. Mundra said that their restructured loan book stood at Rs. 22617crore for the year ended March 2013, while Union Bank of India’s CMD shared the same thing.
Bank of India chief appeared a little more optimistic saying; we expect profits to improve and stress to reduce in the coming quarter. A lot will also depend on the operating environment.
Punjab National Bank net fell 21% to Rs 1,131crore due to higher provisioning. Its gross NPA ratio has deteriorated to 4.27% from 2.9% a year ago. Net NPAs worsened to 2.4% from 1.5%.