Another Kasaragod youth reportedly killed in drone strike in Afghan

Munbai/New Delhi, May 4: India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers said.

Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019.

"There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default," the official with direct knowledge of the matter said.

A fresh surge in bad debt could hit credit growth and delay India's recovery from the coronavirus pandemic.

"These are unprecedented times and the way it's going we can expect banks to report double the amount of NPAs from what we've seen in earlier quarters," the finance head of a top public sector bank told Reuters.

The official and bankers declined to be named as they were not officially authorized to discuss the matter with media.

India's finance ministry declined to comment, while the Reserve Bank of India and Indian Banks' Association, the main industry body, did not immediately respond to emails seeking comment.

The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases.

The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus.

India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.

'RIDING THE TIGER'

Bankers fear it is unlikely that the economy will fully open up before June or July, and loans, especially those to small- and medium-sized businesses which constitute nearly 20% of overall credit, may be among the worst affected.

This is because all 10 of India's largest cities fall in high-risk red zones, where restrictions will remain stringent.

A report by Axis Bank said that these red zones, which contribute significantly to India's economy, account for roughly 83% of the overall loans made by its banks as of December.

One of the sources, an executive director of a public sector bank, said that economic growth had been sluggish and risks had been heightened, even ahead of the coronavirus crisis.

"Now we have this Black Swan event which means without any meaningful government stimulus, the economy will be in tatters for several more quarters," he said.

McKinsey & Co last month forecast India's economy could contract by around 20% in the three months through June, if the lockdown was extended to mid-May, and growth in the fiscal year was likely to fall 2% to 3%.

Bankers say the only way to stem the steep rise in bad loans is if the RBI significantly relaxes bad asset recognition rules.

Banks have asked the central bank to allow all loans to be categorized as NPAs only after 180 days, which is double the current 90-day window.

"The lockdown is like riding the tiger, once we get off it we'll be in a difficult position," a senior private sector banker said.

Bhopal, Jul 25: Madhya Pradesh chief minister Shivraj Singh Chouhan said on Saturday he has tested positive for the coronavirus disease (Covid-19).

Chouhan made the announcement in a series of tweets.

“My dear countrymen, I had symptoms of COVID-19 and after the test, my report has come back positive. I appeal to all my colleagues that whoever came in contact with me, must get their corona test done. And my close contacts should quarantine themselves,” Chouhan said in a tweet in Hindi.

“If COVID19 is treated on time, a person is completely cured. I have been reviewing the status of corona infection every evening since March 25. I will try to review corona situation through video conferencing as much as possible now,” he added.

The chief minister said the review meeting will now be held by home minister Narottam Mishra, urban development and administration minister Bhuppendra Singh, health education minister Vishvas Sarang and health minister Dr Prabhuram Choudhary in his absence.

“I will also continue to do everything possible to help control COVID19 in the state during treatment,” he said.

One of Chouhan’s ministerial colleagues tested positive for Covid-19 late on July 22.

The chief minister along with the minister, the Bharatiya Janata Party’s state unit president VD Sharma and state unit general secretary (organisation) Suhas Bhagat had visited Lucknow in a government plane on July 21 to attend the funeral of MP governor Lalji Tandon who died away in the Uttar Pradesh capital, his hometown. during hospitalisation.

The minister is admitted to a private medical college’s teaching hospital in Bhopal.

Bengaluru, Mar 19: To better enforce social distancing and prevent further spread of Covid-19, the Karnataka health and family welfare department on Wednesday said it will "stamp the back of the palm" of international passengers advised to be on home quarantine, along with the date they are allowed to get out of home. The stamping process began at 12am Thursday.

Pankaj Kumar Pandey, commissioner, health and family welfare, said: "It is noted that a few passengers under home quarantine are not following the instructions. Therefore, it has been decided to stamp the back of the palm of their left hand with a specially designed stamp which will indicate the last day of quarantine."

He said the special stamp will use an indelible ink and "airports in Karnataka have been instructed to follow this without fail". On average, about 3,000 people are arriving in Bengaluru on international flights every day.

The department said social distancing is the only known method of combating the spread of Covid-19 and added, "International passengers are segregated as symptomatic and asymptomatic."

High-risk flyers kept at mass quarantine unit

The symptomatic passengers (Group-A) are taken to designated hospitals; asymptomatic ones, depending on the port of origin, are taken to the quarantine centre or permitted to go on home quarantine.

At the mass quarantine centre, the asymptomatic passengers are divided into moderate-risk (Group-B) and high-risk (Group-C) categories.

“The high-risk passengers are kept at a mass quarantine centre for medical observation. The moderate-risk passengers are being sent for home quarantine where they need to spend 14 days,” the statement added.

Pandey said: “International passengers changing flights within the country cannot be stopped. Ideally, they should be stamped at the first port of entry when they arrive from a foreign country which is not happening.” He said this issue will be brought to the notice of the Directorate-General of Civil Aviation.