Banking News---> Lenders see Little Signs of Revival as NPAs Rise

v  Lenders see Little Signs of Revival as NPAs Rise:

Banks see little specks of revival as the third-quarter earnings season comes to an end, extending their credit-quality pain that began two years ago. A double whammy of increased loan defaults in a slowing economy and lower fund demand from corporate customers for new investments has severely hit the banking industry, driving up their non-performing assets (NPAs) and denting profits. Total net profit of the country’s 40 listed banks shrank more than 20% from a year earlier to Rs. 15,164 crore in the quarter ended on December 31, according to a data. To tide over the situation, banks are seeking the relative safety of retail loans and working capital funding for companies to meet daily requirements. Default rates in the retail segment are also lower compared with those on the corporate side. “Banks’ recovery efforts are being thwarted as there are limited buyers of assets due to overall economic conditions.” said KR Kamath, Chairman, IBA and CMD of Punjab National Bank.