Banks’ ALM worsens in 2011-12, show RBI data
- Malaysian plane crashes off Vietnam coast; 5 Indians on board
- No compromise with live-ins or gay rights, moral values supreme: RSS
- In Mumbai, new warship system malfunctions, Navy officer killed
- SC calls Sahara proposal an âinsultâ, Subrata Roy to stay in jail till March 11
- I'm not a terrorist, Modi should have met me: Arvind Kejriwal
Banks' asset quality mismatch, a rising concern for the Reserve Bank of India, had worsened in 2011-12 and bankers say the situation has not improved in the current financial year.
"As long as gap between deposits and loans is positive, we have no issues. But a negative gap is a concern and banks that are perennial borrowers in the call money market face more problems," said Moses Harding, the head of asset liability management at IndusInd Bank.
Data from the RBI show the gap between deposits garnered and loans disbursed was the highest in the 1-3 year and 3-5 year segments in 2011-12.
In that year, banks garnered around R16 lakh crore of deposits in 1-3 year tenures and they disbursed loans of around R18 lakh crore. In the 3-5 year tenures, deposits garnered were just around R5 lakh crore and loans disbursed were about R6 lakh crore.
The worsening of ALM position of banks was stark in 2011-12 as in the previous financial year, banks had garnered more deposits than they had disbursed loans in the 1-3 year segment.
- Chai pe Charcha gets police protection, EC officials to check on poll norm violation
- Complaint against Kejriwal: Kutch cops gather evidence
- AAP chief to hold first public meeting in Gujarat today
- Nominations for North Bangalore primary begin
- ‘Our campaigning in the state will be out of the box’
- ‘Aai Retire Hotey’ to take the stage for 100th time today