Bank Recovery Set To Happen In 2nd Half Of FY18: BofA-ML

BofA-ML has said that the lenders' hopes of recovering money from assets qualified as 'bad' recently will come true in the latter half of the next fiscal, once changes in redressal mechanisms are introduced.

Bank Recovery Set To Happen In 2nd Half Of FY18: BofA-ML
The American brokerage said the banks would keep recognizing more stress for up to a year more, but once all the necessary changes including the stressed asset fund become a reality, the recovery process should start.

Commenting on the issue, a BofA-ML Official told the media, "We think October 2017-March 2018 could end up surprising us by way of stronger recoveries, especially if get some uptick in the macroeconomy."

"Lenders who have posted huge reverses in profitability due to an RBI-mandated increase in stress asset recognition, have been saying that they will work on accounts individually and try to reverse the provisions made for bad assets," he added.

As per reports, the RBI had given banks a list of 130 accounts, asked them to classify those as non performing and take the hit in the quarters ended December 2015 and March 2016.

Read more about: banks, npas
Story first published: Friday, June 10, 2016, 13:00 [IST]
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