ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Financial Management

NEED FOR SECURITIZATION IN INDIA

NEED FOR SECURITIZATION IN INDIA

Discuss NEED FOR SECURITIZATION IN INDIA within the Financial Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; NEED FOR SECURITIZATION IN INDIA The resource crunch the Indian economy is facing today for large-scale infrastructure investment is stupendous. ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
NEED FOR SECURITIZATION IN INDIA
Old
 (1 (permalink))
Abhijeet S
abhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to behold
 
abhishreshthaa
Operations Manager at Management Paradise
Management Paradise Guru
 
Status: Offline
Posts: 7,045
Join Date: May 2010
NEED FOR SECURITIZATION IN INDIA - October 1st, 2010

NEED FOR SECURITIZATION IN INDIA


The resource crunch the Indian economy is facing today for large-scale infrastructure investment is stupendous. Infrastructure needs to grow at least at 25% annual rate in the next few years to sustain 7-8% long-term growth of the Indian economy. Securitization alone can come to the rescue for providing long-term finance.


Securitization began in India in the early nineties. The CRISIL rated the first securitization programme in 1991-92 when Citibank securitised a pool from its auto loan portfolio and placed the paper with GIC Mutual Fund. The volume involved was about Rs. 160 million.

Analysts say the Securitization Bill, which allows banks to seize defaulters’ assets, would be a key trigger for banking stocks. Public sector banks, in particular, with huge non-performing assets would be the key beneficiaries. Today, the banking sector is plagued by huge non-performing assets which are estimated at over Rs 1, 00,000 crore.


The banking industry is currently burdened with bad loans that account for 14 per cent of their advances in gross terms and net NPAs at 7-8 per cent amounting to Rs 600bn.


Banks NPAs (%) 21st Nov 7th Dec %age change


State Bank of India 5.7 240.3 273.5 13.82


ICICI 4.7 120.7 134.85 11.72


Bank of Baroda 5.1 48 60.3 25.63


Bank Of India 6 28.5 31.65 11.05


Dena Bank 16.4 9.65 10.9 12.95


Global Trust Bank 9.2 15.05 17.35 15.28


Some of the new banks with higher valuations like HDFC Bank have very little NPAs, so they will not gain much on account of the bill. But some of the nationalized banks like Bank of Baroda, Bank of India, and State Bank of India have balance sheets that are riddled with NPAs.


Banks and financial institutions have sent notices to 10,000 defaulters threatening to take over their companies, if they don't come up with proposals to clear their dues. State Bank of India (SBI) had moved to seize the assets of a hotel in Nashik, forcing the borrower to agree on a repayment plan. This will improve the asset quality and boost profitability of banks.


The banking industry is targeting to reduce its non- performing assets to 5% this fiscal as against the current average of 7-8% while streamlining operations to improve profitability significantly. Banks will be able to recover up to 25-30 per cent of NPAs as such fixed assets may now have depreciated considerably. However, the bill is going to boost the bottom line of the banks.
Advertisements


Help Others > Network > Grow


Work with us part time/full time as forum moderator. Email us your resume on careers @ managementparadise.com PLS PRESS THANKS BUTTON IF U LIKED MY POST.

Friends: (0)
Reply With Quote
Related to NEED FOR SECURITIZATION IN INDIA
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
REVOLVING ASSETS SECURITIZATION Abhijeet S Financial Management 0 October 1st, 2010 02:16 PM
FUTURE FLOW SECURITIZATION Abhijeet S Financial Management 0 October 1st, 2010 02:15 PM
Asset Securitization Abhijeet S Financial Management 0 October 1st, 2010 02:14 PM
WHEN CAN SECURITIZATION OCCUR? Abhijeet S Financial Management 0 October 1st, 2010 02:10 PM
The Distinct features of securitization in India Rohit R Articles !! 7 February 8th, 2010 01:28 AM
 

Reply

Bookmarks

Tags
india, securitization

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

Test bank on Business...
Last post by ?? ?
3 Hours Ago 09:39 PM
3 Replies
Solution manual on... ( 1 2)
Last post by Rdheuderson Yeng
7 Hours Ago 05:45 PM
19 Replies
List The TOP 20... ( 1 2 3)
Last post by Neeta Khanna
10 Hours Ago 03:08 PM
20 Replies
Solution manual on... ( 1 2)
Last post by Alyssa Trinidad
11 Hours Ago 02:12 PM
17 Replies
Top List of Various MBA...
Last post by Pramit Singh
12 Hours Ago 12:38 PM
0 Replies
Should mobile phones be...
Last post by Hrishita Sahay
13 Hours Ago 12:09 PM
1 Replies
Marketing Research notes ( 1 2 3... Last Page)
Last post by Hrishita Sahay
13 Hours Ago 12:06 PM
33 Replies
Mere Negligence of...
Last post by Stella Lauren
13 Hours Ago 11:50 AM
0 Replies
Common Management...
Last post by Bhautik Kawa
13 Hours Ago 11:42 AM
0 Replies
Solution manual on... ( 1 2 3... Last Page)
Last post by Bhautik Kawa
14 Hours Ago 10:44 AM
41 Replies
Test Bank on Financial... ( 1 2 3)
16 Hours Ago 08:50 AM
28 Replies
Sample Bio-data...
Last post by Yashwant Naik
1 Day Ago 09:30 PM
7 Replies
Indian Rupee Update by...
Last post by Epic Research
1 Day Ago 05:03 PM
1 Replies
Asian Markets Update by...
Last post by Epic Research
1 Day Ago 05:01 PM
1 Replies
BMS notes for mp : all... ( 1 2 3... Last Page)
Last post by Nandini Bharat
1 Day Ago 12:57 PM
253 Replies

» Projects Helpline

Retail Management Notes
Last post by Bhautik Kawa
2 Days Ago 10:56 AM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in