Sonia falls ill, leaves Varanasi roadshow towards the fag end

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.

Lucknow , May 13: Samajwadi Party chief Akhilesh Yadav on Wednesday took a jibe at Prime Minister Narendra Modi over announcing Rs 20 lakh crore special economic package to boost the economy saying that the Centre is again making "false promises to 133 crore Indians".

"Earlier, you promised Rs 15 lakh and now Rs 20 lakh crore. You have made false promises 133 times with 133 crore Indians. How can someone trust you this time? People now are not asking how many zeroes there are but how many false promises have been made," he tweeted (translated from Hindi).

Yesterday, Prime Minister Narendra Modi had announced a Rs 20 lakh crore economic stimulus package for the country fighting COVID-19, stating that it will give a new impetus and a new direction to the self-reliant India campaign.

The Prime Minister had also announced that the fourth phase of lockdown will be completely redesigned with new rules and will commence from May 18.

Malappuram, Jun 5: A lawyer has filed a complaint with Superintendent of Police, Malappuram against BJP leader Maneka Gandhi and others for allegedly indulging in a hate campaign against Malappuram district and its residents.

Advocate Subhash Chandran, who hails from Malappuram, on Thursday filed a complaint seeking registration of FIR against former Union Minister Maneka Gandhi and others for allegedly indulging in a hate campaign against Malappuram and the residents of the district.

The complainant alleged that the campaign against the district was very derogatory and with a malafide intent.

The complaint stated that the unfortunate death of an elephant in Mannarkkad, Palakkad District dominated social media conversations in the last two days but a group of people deliberately added communal colour into it only to spread hatred against Malappuram, which is a Muslim majority district in Kerala.

It also stated that the elephant in question died on May 29, 2020, in Palakkad not in Malappuram as claimed by a section in social media users. Prominent news outlets operating from the South also reported that the elephant died after consuming explosive-laden pineapple in Palakkad.

The complaint also named political commentator, Tarek Fatah, for allegedly starting a hate campaign against the district and the minority community.

It alleged that Union Minister Maneka Gandhi made false and frivolous allegations against the district of Malappuram and its residents.

Chandran, through the complaint, prayed to the district police chief to register an FIR against Maneka Gandhi and others under Section 153A, 120B etc. of Indian Penal Code.

An elephant had died after she ate the pineapple stuffed with crackers and forest officials said that it died standing in river Velliyar after it suffered an injury in its lower jaw.

The elephant was seen standing in the river with her mouth and trunk in the water for some relief from the pain after the explosive-filled fruit exploded in her mouth.