Page 44 - Banking Finance December 2018

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st adapt to chan es in their en iron ent or die. he o e er there is a need to create a i rant ar et for
Ban s are facin cha en es hich ha e ad erse i pacted stressed assets so that an s are a e to se their s at a
the asset a it capita ade ac and profita i it or o r fair price.
an s.
rofita i it an apita e a
sset a it he financia hea th of the ndian an in sector re ains a chief

he sset a it re ie cond cted Reser e Ban in acroecono ic concern. Risin s increased pro isions and
o ro ht the pro e of hi h s to the forefront. ess credit ro th ha e ad i pacted the profita i it of the
his ro in stoc of non perfor in assets has ad erse an in s ste . he deterioratin hea th has ad erse affected
i pacted the ro th profita i it and capita ade ac their a i it to end. orporate oans are sti s d ed and an s
e e s of the an s. are re in on retai oans for credit.

s per RB s inancia ta i it report ne ratio of eterioratin hea th and increase in ini capita
ched ed o ercia Ban s rose fro .2 in ept 7 to re ire ents nder Base is i e to p t near ha f of
. in Mar . Macro stress tests indicate that nder the ndian an s in dan er of reachin capita tri ers. e en
ase ine scenario of c rrent acroecono ic o t oo Bs an s are nder the fra e or to pre ent f rther
ratio a rise fro . in March 2 to 2.2 capita erosion and to stren then the to the point of
March 2 . resi ience so that the can restart their nor a operations
as soon as possi e.
o o erco e the cha en es of ic ector Ban s the
econo ic s r e of 2 hi h i hted the fo r R s he c c e is nearin its end and the an s i et
Reco nition Recapita i ation Reso tion and Refor . he respite fro this aspect soon. o i pro e profita i it foc s
R Reco ni ed the pro e the o ern ent st e on rationa i ation of costs siness foc s on ore
a enda is ai ed to ards Recapita i ation and Refor and co ercia ines c sto i ed prod cts and cross se in to
the B is to ards Reso tion. B has opened the door c sto ers.
of hope for reso tions of ar e stressed acco nts in near
f t re. he reso tion has de onstrated the efficienc of i ita i ation
the s ste adherin to ti e ines a e sa e of propert
he ne a e cons er ase is techno o sa a a s
ers dischar e e istin orro er on co ercia ter s
connected and oo in for a persona i ed conte t a
and conditions and assist enders to c ean their oo s.
e perience ith rea ti e on ine infor ation. e phone
penetration has reached a ost and the rise of the
rther ro ect en isa es de stressin the Ban in
idd e c ass has increased the n er of ho seho ds ith
sector in ndia tac in the ide spread and deep rooted
internet connecti it . t is diffic t to eet the re ire ents
enace in a ti e o nd and s ste atic anner is
of this se ent.
another step in this direction.
rther an s ha e ar e c sto er se ents ho are not
co p ter sa and sti do not ha e access to the internet.
here is a se ent that has ro n p ith a deep rooted
faith in paper transactions and the e ief that the ranch is
the p ace to cond ct a an in transaction. n ine sec rit
is sti a er i concern especia for the o der eneration
of an in c sto ers.

i ita transfor ation in o es de i erin ne cons er
propositions that are en a in co prehensi e int iti e
persona i ed and conte t a to c sto ers e era in
nder in di ita techno o ies s ch as the internet o i e
socia c o d and ana tics. o do this an s need to start

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