1.

PRIMARY REASONS FOR NPA IN BANKS IN INDIA

-Aggressive lending practices, Lax credit appraisals and poor post disbursal monitoring

-Wilful default /Fraud /Corruption

-Economic slowdown in certain sectors

-Absence of strong bankruptcy regime

2.Gross NPA ratio declined to 9.3% in march2019 against a peak of11.5%in march 2018.Expected to
come down to 8% by march 2020.

3.Provision coverage ratio increased to 60.9% in march 2019 from 48.3 in march 2018.

4.IBC 2016 enacted which provided for taking over management of the affairs of corporate debtor at
the outset of insolvency proceedings. From 80 cases resolved Rs 60000 Cr is recovered, apart from
this out of court settlement has led to recovery of Rs.1,20,390

1.Borrowings are from NCD (Secured and Unsecured) Term Loan(Secured and Unsecured)and Bonds

(Unsecured).Maturity profile is well spread out and interest rate is between 6.78% to 9.25% for NCD
and 1.87% to 10.5%for Bonds.

2.Working capital loan is from Commercial paper , Foreign and Indian Banks amounting 64436 Cr.

3. Debenture redemption reserve is carved out of equity Reserves amounting Rs.9412 Cr.

4.Finance cost is Rs.16495Cr.Due to tax deduction nature of finance cost approx.. 16495 multiplied
by tax rate of 27.87%....... a tax saving of 4600 Cr was realised.

1. Gross Debt 2,87,505 Cr

2. Cash and Marketable 1,33, 027Cr
Securities
3. Net Debt 1,54,478Cr
4. Total equity 3,87,112Cr
5. Debt to Equity Ratio .40