{"id":10197,"date":"2020-07-29T06:57:17","date_gmt":"2020-07-29T06:57:17","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=10197"},"modified":"2020-07-29T06:57:17","modified_gmt":"2020-07-29T06:57:17","slug":"narendra-modi-to-troubleshoot-issues-with-banks-nbfcs-today-credit-growth-financial-stability-on-cards","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=10197","title":{"rendered":"Narendra Modi to troubleshoot issues with banks, NBFCs today; credit growth, financial stability on cards"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2028678 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2.jpg\" alt=\"narendra modi, narendra modi, banks, NBFCs, troubleshoot, bank credit\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2028678 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2.jpg\" alt=\"narendra modi, narendra modi, banks, NBFCs, troubleshoot, bank credit\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2028678 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2.jpg\" alt=\"narendra modi, narendra modi, banks, NBFCs, troubleshoot, bank credit\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/narendra-modi-2-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">Low demand, lack of manpower, stuck working capital, and lack of capital may lead to further stress on employment.<\/span><\/figure>\n<\/div>\n<p><span style=\"font-weight: 400;\">Prime Minister <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/narendra-modi\/\" rel=\"noopener noreferrer\">Narendra Modi<\/a> will today join a brain-storming session with stakeholders of banks &amp; NBFCs. Amid a deteriorating credit profile of banks, PM Modi will discuss and deliberate on vision and roadmap for the future, said the Prime Minister\u2019s Office. The main topics on agenda include credit products and efficient models for delivery; financial empowerment through technology; and prudential practices for stability and sustainability of financial sector. \u201cHighlight of the discussion will be to boost growth through effective delivery of credit to different sectors of the economy,\u201d Sameer Narang, Chief Economist, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/bank-of-baroda-stock-price\/\" rel=\"noopener noreferrer\">Bank of Baroda<\/a>, told Financial Express Online.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even before the coronavirus pandemic, the Indian banking system was struggling through low credit offtake despite multiple rate cuts by the Reserve bank of India. The wound deepened after the nationwide lockdown as the credit offtake further slowed down. Credit growth of the scheduled commercial banks, which had considerably weakened during the first half of 2019-20, slid down further to 5.9 per cent by March 2020 and remained muted up to early June 2020, said the <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>\u2019s Financial Stability Report.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consequently, the MSME sector is affected because of a lack of cash flows. Low demand, lack of manpower, stuck working capital, and lack of capital may lead to further stress on employment. Potential margin compression in corporate bonds was also seen as increasing leverage, leading to a negative impact on credit metrics and consequent rating downgrade that can result in difficulties for refinancing of loans and raising capital, the RBI FSR added.<\/span><\/p>\n<p><strong>Also Read:\u00a0<a href=\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/yes-bank-is-a-zombie-left-with-a-half-rescue-but-enlisting-depositors-will-be-even-bigger-disaster\/2038448\/\" target=\"_blank\" rel=\"noopener noreferrer\">Yes Bank is a zombie left with a half rescue; but, enlisting\u00a0depositors will be even bigger\u00a0disaster<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">In these challenging times, when businesses need capital support, the banking sector plays an important role in contributing to India\u2019s economic growth through financing infrastructure, agriculture, local manufacturing including MSMEs. Financial inclusion can play a big role in financial empowerment through technology, the PMO added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, the woes of India\u2019s commercial banks don\u2019t seem to fade away anytime soon as the RBI has projected that NPAs may shoot up in the coming months. In July\u2019s Finacial Stability Report, the central bank showed that the gross NPA ratio of all SCBs may increase from 8.5 per cent in March 2020 to 12.5 per cent by March 2021 under the baseline scenario. It added if the macroeconomic environment worsens, the ratio may further escalate to 14.7 per cent under the very severely stressed scenario. Responding to the projections, RBI Governor Shaktikanta das said that financial sector stability is a prerequisite for giving confidence to businesses, investors, and consumers, thus, banks have to remain extremely watchful and focused.<\/span><\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/narendra-modi-to-troubleshoot-issues-with-banks-nbfcs-today-credit-growth-financial-stability-on-cards\/2038500\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Low demand, lack of manpower, stuck working capital, and lack of capital may lead to further stress on employment. Prime Minister Narendra Modi will today join a brain-storming session with stakeholders of banks &amp; NBFCs. Amid a deteriorating credit profile of banks, PM Modi will discuss and deliberate on vision [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10198,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-10197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/07\/narendra-modi-2.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/10197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10197"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/10197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/10198"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}