(b)
The following table entitled GAAP to Non-GAAP Reconciliations presents the computations of certain financial measures related to tangible common equity and cash efficiency. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)
(d)
December 31, 2020, ratio is estimated and reflects Key s election to adopt the CECL optional transition provision.
GAAP to Non-GAAP Reconciliations
(dollars in millions)
The table below presents certain non-GAAP financial measures related to tangible common equity, return on average tangible common equity, pre-provision net revenue, and cash efficiency ratio and certain ratios excluding notable items.
Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of ongoing financial performance. Management believes it is useful to consider certain fina
Read more about A surge in bad debt is set to further worsen India s shadow bank crisis on Business Standard. Non-performing assets already swelled in the most recent data to the highest in at least five years, at 6.3% as of March 2020 even before the worst of the pandemic impact, the RBI said
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Rebooting Economy 60: India in a financial mess of its own making
Misdirected stimulus that relies heavily on liquidity infusion when demand is depressed and incentivising loan defaults by routinely writing off NPAs threaten financial stability and economic recovery
Prasanna Mohanty | January 21, 2021 | Updated 14:56 IST
The Insolvency and Bankruptcy Code (IBC) is unlikely to help much in cleaning up bad loans
The RBI s Financial Stability Report (FSR) released on January 11, 2021 warns of serious financial risks to the economy (described as unintended consequences ) caused by the monetary and fiscal measures pursued to revive the economy.
It says the financial vulnerabilities incipiently pre-pandemic have intensified and pose headwinds to a fuller recovery . Its macro stress tests show that the Gross NPA (GNPA) ratio of Scheduled Commercial Banks (SCBs) is likely to rise from 7.5% in September 2020 to 13.5% by September 2021, under the baseline scenario, and 14.8% un
Updated Jan 19, 2021 | 12:04 IST
Simply put, a bad bank is a financial institution created with the sole purpose of taking on non-performing assets of lenders, enabling them to refresh their books and focus on lending. Representational image.
Key Highlights
The RBI noted in its latest Financial Stability Report that gross NPAs, under a baseline scenario, may rise as high as 13.5 per cent by September 2021, up from 7.5 per cent in September 2020
The concept of a bad bank is not novel but came to prominence during the global financial crisis between 2007 and 2009
Banks, non-financial banking companies and similar institutions are critical components of the economy as they represent formal lines of credit