Unending pain: On SBI’s Q3 loss
Unending pain: On SBI’s Q3 loss
If the financial performance of India’s largest lender (ऋणदाता/कर्ज देनेवाला) is anything to go by, an end to the severe bad loans crisis (संकटकाल) may be much farther beyond the horizon(क्षितिज/ज्ञान आदि की सीमा) than previously anticipated(अपेक्षित/प्रत्याशित). For the first time in almost 19 years, the State Bank of India reported a quarterly loss of ₹2,416 crore for the three months ended December, compared with a net profit of ₹2,610 crore in the year-earlier period. While the figures are not strictly comparable after SBI completed merger (मिलावट/विलयन) with its associates, the loss was the result of both a massive increase in provisions to account for bad loans and a substantial amount of mark-to-market losses on its holding of government bonds. Provisions for non-performing assets (NPAs) more than doubled to about ₹17,760 crore, from about ₹7,200 crore in the third quarter of 2016-17. On treasury(ख़ज़ाना/भंडार) operations, SBI recorded a loss of about ₹3,255 crore, versus a profit of about ₹4,776 crore in the comparable period. The bank revealed that an audit by the Reserve Bank of India showed a divergence (विस्तार/अंतर) of ₹23,239 crore in the way it classified assets (संपत्ति)at the end of the last financial year, which led to increase in provisions in the last quarter. Most of thesereclassified (पुनर्वर्गीकृत) assets are linked to troubled projects in sectors including power and telecom. SBI, of course, is not the only lender to have had its assets forcibly reclassified by the RBI. Private sector lenders have also been found guilty of pushing troubled assets under the carpet (छाना/ढंकना) until the RBI called their bluff (धोखा/दिखावा).
It may be tempting (मोहक/प्रलोभी) to believe that last year’s bankruptcy (दिवालियापन/दिवाला) law reforms will soon begin to ease the pain at banks by encouraging the quick sale of assets of troubled borrowers (उधारकर्ताओं/उधार लेनेवाला). The proceeds from such sales, however, would likely amount to very little in comparison with the mammoth (विशाल/बहुत बड़ा) scale of troubled assets. According to a joint study by Assocham and Crisil, gross NPAs in the banking system are estimated to increase to ₹9.5 lakh crore by March 2018, from ₹8 lakh crore a year earlier. In that case, write-offs recognising (मान्यता देना) losses may be the most honest and practical way to deal with the bad loans problem. So the RBI in the coming months should continue to push banks, both public and private, to promptly(ठीक समय पर/तुरन्त) recognise the stressed loans on theirportfolios (विभागों/खुले पत्र). Incidentally, Prime Minister Narendra Modi last week laid the blame for bad loans on the previous government. While it is quite true that the present bad loans crisis has been a long time in the making, the problem of lax corporate governance, which has plagued public sector banks and contributed (योगदान/अंशदत्त) in no small measure to the present crisis, still remains largely unaddressed by the government. Even the latest plan to recapitalise public sector banks may achieve little more than giving some temporary relief to lenders for the sake of reviving (पुनर्जीवित/पूर्वरूप में लाना) credit growth. The bad loans problem is likely to remain a festering (घाव पकना/सड़ना) sore (पीड़ादायक/उदास) and risks undermining the health of the economy until meaningful structural reforms to the banking system are undertaken.
Synonyms: catastrophe, change, confrontation, crunch, deadlock
Antonyms:agreement, benefit, blessing, breakthrough, calm
Synonyms: bank, banker, backer, granter, moneylender
Synonyms: combination, takeover, tie-up, unification, union
Antonyms:division, separation, parting
Synonyms: blunt, blustering, brief, direct, frank
Antonyms:courteous, definite, devious, dishonest, lengthy
Synonyms: appetizing, attractive, enticing, fascinating, heavenly
Antonyms: distasteful, repulsive, ugly, repellent, disenchanting
6.Borrowers (उधारकर्ताओं/उधार लेनेवाला).
Synonyms: bum, panhandler, vagabond, asker, borrower
7.Mammoth (विशाल/बहुत बड़ा)
Synonyms: colossal, enormous, gargantuan, gigantic, immense
Antonyms: common, insignificant, little, miniature, miniscule
8.Portfolios (विभागों/खुले पत्र)
Synonyms: bag, briefcase, case, container, envelope
Antonyms: easy, painless, insensitive, pleasant, unimportant
Synonyms: carpeting, rug, tapestry, matting, runner