This PPT is useful for SYBMS Finance Specialization students
CLASS: SYBMS (FINANCE)
SUB:- BASICS OF FINANCIAL SERVICES
CHP:- 4 Development Banks &
Commercial Banks
NPA in Indian Banking Industry, Analysis of Bankruptcy Code, Resolution mechanism through Asset Reconstruction Company (including Valuation Techniques)
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
This PPT is useful for SYBMS Finance Specialization students
CLASS: SYBMS (FINANCE)
SUB:- BASICS OF FINANCIAL SERVICES
CHP:- 4 Development Banks &
Commercial Banks
NPA in Indian Banking Industry, Analysis of Bankruptcy Code, Resolution mechanism through Asset Reconstruction Company (including Valuation Techniques)
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
In response to the 2008 financial crisis, regulators and investors put pressure on the FASB and IASB to develop models that would require financial institutions to recognize losses earlier in the credit cycle. Measuring credit loss on Pools of loans...
•Gain an understanding of the CECL model and impact on the Allowance for Loan Losses calculation.
•Understand the potential impact of the CECL on Credit Union financial statements upon adoption.
•Understand the differences between the current allowance for loan losses accounting model and the proposed CECL model.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
In response to the 2008 financial crisis, regulators and investors put pressure on the FASB and IASB to develop models that would require financial institutions to recognize losses earlier in the credit cycle. Measuring credit loss on Pools of loans...
•Gain an understanding of the CECL model and impact on the Allowance for Loan Losses calculation.
•Understand the potential impact of the CECL on Credit Union financial statements upon adoption.
•Understand the differences between the current allowance for loan losses accounting model and the proposed CECL model.
A current asset is either cash or an asset (e.g. stock) that can be converted into cash within a year and is often used to pay off current liabilities.
Current assets typically include categories such as cash, marketable securities, short-term investments, accounts receivable , prepaid expenses, and inventory.
Approaches to Financing Current Assets.
Instruments in raising finance.
advantages and disadvantages of trade credit.
inter Corporate Deposits , etc.
Brief overview of Debentures & Bonds and Term Loans.
A project given to our class group for the subject Corporate Finance. Hope it helps.
Contact for additional information
www.facebook.com/Sahith1
ansahithkrishna@gmail.com
Corporate India - Distress Resolution Solutions Sumedha Fiscal
The Indian Banking scenario is going through unprecedented times with stressed loan portfolio. The portfolio of all Banks put together is more than 7 lakh crore which is > 10% of total advances and there is an apprehension that there could be significant additions too.
Realizing the problem RBI has come out with many changes and schemes to tackle such stressed accounts.
Here are come of the distress resolution solutions that you can look into.
Sources of Finance in entrepreneurship.pptxNaishana
In business, financing plays a crucial role in enabling growth and operations. Common sources of finance include equity financing, where funds are raised by selling ownership stakes in the company to investors, and debt financing, which involves borrowing money typically from banks or financial institutions with the promise of repayment with interest. Additionally, businesses may opt for alternative sources such as venture capital, where investors provide funds in exchange for equity and often offer expertise and guidance, or crowdfunding, where funds are raised from a large number of individuals online. Each source of finance has its advantages and considerations, and businesses often utilize a combination of these options to meet their specific needs and objectives.
Similar to Non-Performing Assets ( in India ) (20)
Privatization in the Indian Economy. An Explanation through the Time Machine Concept. Introduction, Meaning, Process, Needs, Effects and Conclusion of Privatization in India.
Poverty as a Concept ( in relation with the World and India )Hardik Bhaavani
Poverty in India in relation to Economics Syllabus.
Indian Economy and Poverty.
Concepts,
Characteristics,
Causes,
Measurement,
Measures for Removal of Poverty.
Conclusion.
Social Audit described fully and faithfully with every detailed information.
It includes Features/Characteristics,
Advantages,
Disadvantages,
Benefits, etc.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
1. Non-Performing Assets
(NPA's)
A Group Effort by :-
1. Hardik Bhaavani
2. Alan Naeem
3. Shubh Tiwari
4. Sagar Pujara
5. Rajkumar Kushwaha
6. Hit Alodariya
7. Utsav Haldar
8. Suresh Dangar
2. NPA ? What is it ?
• Simple View :- An Asset becomes Non-Performing when it ceases to
generate income for the Bank.
• A Non-performing asset (NPA) is defined as a credit facility (Ex;
Overdraft, Cash Credit, Gold Loan, Mortgaged Loans, etc.) in respect
of which the interest and/or installment of Bond/Principal has
remained ‘past due’ for a specified period of time.
• Detailed View :- A Non-Performing Asset (NPA) refers to a
classification for loans or advances that are in default or are in
arrears on scheduled payments of principal or interest.
3. Conditions for Assets/Debt to become NPA :-
In most cases, Debt is classified as nonperforming when loan
payments have not been made for a period of 90 days.
While 90 days of Non-Payment is the standard, the amount of
elapsed time may be shorter or longer depending on the terms
and conditions of each loan. ( i.e. it depends on the Bank to
classify a Loan as an NPA based on the Situation )
4. Conditions for Classification of Assets/Debt as
NPA in India :-
With Effect from 31st March, 2004, an NPA shall be a Loan or an
Advance. The Following are the Conditions for Classification of
Assets/Debt as an NPA :-
• Interest and/or Installment of Principal remains overdue for a
period of more than 90 days in respect of a Term Loan ( Loans
for Pre-Negotiated Period ranging from 3 months to 30 years
with Un-Fixed interest rates ).
• The Account remains "Out of Order" in respect of an Overdraft/
Cash Credit.
5. The Bill remains overdue for a period of more than 90 days in
the case of bill purchased and discounted.
Interest and/or Installment of Principal remains overdue for Two
Harvest Seasons but for a period not exceeding two and a half
year in the case of an advance granted for agricultural purposes
Any Amount to be received remains overdue for a period of
more than 90 days in respect of other accounts.
6. Reasons for Occurrence of NPAs :-
These
loans can
occur
due to
the
following
reasons :-
Usual banking operations /Bad lending practices
A banking crisis (as happened in USA, South Asia and
Japan)
Overhang component (due to Environmental Reasons,
Natural Calamities, Business Cycle, Disease Occurrence...)
Incremental component (due to internal bank
management, like credit policy, terms of credit, etc...)
7. Problems caused by NPAs :-
Depositors do not get rightful returns and many times may lose uninsured deposits.
Banks may begin charging higher interest rates on some products to compensate
NPA losses.
Bank shareholders are adversely affected.
Bad loans imply redirecting of funds from good projects to bad ones. Hence, the
economy suffers due to loss of good projects and failure of bad investments.
When bank do not get loan repayment or interest payments, liquidity problems
may ensue.
8. The NPA Effects Explained :-
• Non-Performing assets are typically listed/shown on the Balance
Sheets of Banks. This is an Important Measure of Performance of
Banks when compared with the Profitability Ratio. ( i.e., More Profit +
Less NPA = High Performance and Better Growth Possibility of the
Bank )
• The NPA's as mentioned above affect the Performance of the Bank
and thus, it affects the Market Value of Shares ( i.e., Market
Capitalization ) of the Bank.
• Thus, they adversely affect the National Economy.
9. • It Creates Three Distinct Burdens on the Lending Bank :-
• The Non-Payment of Interest or Principal reduces Cash Flow for
the Lender, which can disrupt Budgets and Decrease Earnings.
• Loan Loss Provisions, which are set aside to cover potential
losses, Reduce the Capital available to provide Subsequent
Loans. ( Capital Blocked in NPA Provisions = Lesser Loans
available for Dispersion = Lesser Business Opportunities )
• Once the Actual Losses from Defaulted Loans are determined,
they are Written Off against Earnings.
• It is the Main Reason for Bankruptcy of many Co-Operative Banks
because NPA's are mostly created by Willful Defaulters and/or
Borrower's without adequate Securities Mortgaged.
10. Classification of Assets which are Non-
Performing :-
•Sub-Standard Assets
•Doubtful Assets
•Loss Assets
Banks are Required to
classify Non-
Performing Assets into
three categories
according to the
period for which the
asset has remained
non-performing and
the realizability of the
dues :-
11. 1.) Sub-Standard Assets
• A Sub-Standard Asset would be one which has remained NPA for a
Period Less than or Equal to 12 Months.
• Sub-Standard Asset is the Asset in which Bank have to maintain 15%
of its reserves.
2.) Doubtful Assets
• A Doubtful Asset is one which has remained NPA for a period
exceeding 12 months. ( i.e. After it has remained in the Sub-Standard
Category for 12 Months )
12. 3.) Loss Assets
• All those assets which cannot be recovered are called as Loss Assets.
• Loss assets are Assets where Loss has been identified by the Bank,
through internal or external auditor or central bank inspectors, but
the amount has not been written off, wholly or partly.
13. Methods for Managing/Recovering Losses
from NPAs :-
One Time
Settlement
Lok Adalat
Debt Recovery
Tribunals
Corporate
Debt
Restructuring
SARFAESI Act
Asset
Reconstruction
Companies
14. a.) One Time Settlement
• Banks have to devise one-time compromise settlement scheme for
the resolution of NPAs, as a part of their Loan Recovery Policy.
• According to the One-time Settlement Formula, there is a Minimum
Amount Prescribed to be Covered.
• The Minimum Amount to be covered in case of Doubtful NPAs is 100%
of the Outstanding Balance ( without considering Interest ) in the
Account as on that date.
• The Minimum Amount to be covered in case of Sub-Standard NPAs is
100% of the Outstanding Balance plus Interest at the Existing Prime
Lending Rate till date of Final Payment. ( View :- Sub-Standard NPA will
convert into a Regular Loan after Agreement )
15. b.) Lok Adalat's
• The Indian Banks’ Association (IBA) has been issuing guidelines to
member institutions for taking up of cases for settlement through Lok
Adalat's.
• Cases involving an amount up to Rs.5 lakh may be referred to Lok
Adalat's.
• There are certain advantages in using the forum of Lok Adalat's
by banks and financial institutions in compromise settlement
of their NPAs :-
• There is no court fees involved when fresh disputes are referred to it.
• If no settlement is arrived at, the parties can continue with court
proceedings.
• Its Decrees have Legal Status and are Binding.
16. c.) Debt Recovery Tribunals & Debt Recovery
Appellate Tribunals
• The Order Passed by Debt Recovery Tribunal is appealable to a Debt
Recovery Appellate Tribunal.
• The Central Government sets up the Tribunals and provides them
with a Presiding Officer, Recovery Officers and other employees.
• Every Bank and Financial Institution can initiate the Procedure of
Recovery by making an Application to the Tribunal within the Local
Limits of whose Jurisdiction the Defaulter Company is Located.
17. d.) Corporate Debt Restructuring
• Corporate Debt Restructuring is the Reorganization of a Distressed
Company's ( a term in Corporate Finance used to indicate a condition when
promises to Creditors of a Company are broken or honored with difficulty )
outstanding obligations ( Liabilities ) to restore its Liquidity and keep it in
Business.
• It is often Achieved by way of Negotiation between Distressed companies
and their Creditors, such as Banks and other financial institutions, by
Reducing the total amount of Debt the company has, and also by
decreasing the interest rate it pays while increasing the period of time it
has to pay the obligation back.
• Occasionally, some of a company's debt may be forgiven by creditors in
exchange for an equity position in the company. Also, Mergers and
Acquisitions might take place with Substantial changes in the Management
of the Company.
18. e.) SARFAESI Act
• The Securitization and Reconstruction of Financial Assets and
Enforcement of Securities Interest Act, 2002 is known as
the SARFAESI Act.
• It is an Indian Law which allows Banks and other Financial Institution
to Auction Residential or Commercial Properties to Recover Loans.
(Gujarati = નિલામી)
• The Act deals with the following three aspects :-
• Securitization
• Asset Reconstruction
• Security Enforcement
19. • Securitization is Conversion of a Financial or Non-Financial Asset into
Securities.
• Mortgage-backed securities ( Ex; Land ) are a perfect example of
Securitization.
• Asset Reconstruction is a Financial Tool for Corporate Debt Restructuring.
• Asset Reconstruction means Acquisition by any Securitization Company or
Reconstruction Company of any right or interest of any bank or financial institution in
any Financial Assistance ( Loans Given ) for the purpose of Realization ( Recovery ) of
such Financial Assistance.
• Enforcement of Securities Interest confers the Right on Lenders ( Banks ) to
Exercise Securitization.
• This Law is not Applicable on Unsecured Loans and when the Principal Due
is less than 20% of the amount advanced.
• It is an Effective Weapon to Recover NPA's.
20. f.) Asset Reconstruction Companies
• An Asset Reconstruction Company is a specialized financial
institution that buys the NPAs from Banks and Financial Institutions so
that the latter can clean up their balance sheets.
• In other words, ARCs are in the business of buying bad loans from
Banks.
• This helps Banks to concentrate in Normal Banking Activities.
• Banks rather than going after the defaulters by wasting their time and
effort, can sell the bad assets to the ARCs at a mutually agreed value.
23. Conclusion
Thus, NPA is not to be taken lightly
for the Economy as it affects the
overall development of the
Economy and it is a Serious
Problem which needs to be Sorted
Systematically for the Growth of
the Nation and its People.
Constant and Continuous Efforts
are Needed in this Direction to
Solve the Problem of NPA's in India
and to achieve Sustainable
Growth.