Sunday January 21st, 2018

Latest News

Stress In Indian Banking Will Be Short-Lived: Naina Lal Kidwai

Stress In Indian Banking Will Be Short-Lived: Naina Lal Kidwai

Naina Lal Kidwai (Photo: IANS)

NEW DELHI: The stress in the Indian banking system is short-lived and this key industry will only emerge stronger, says veteran banker Naina Lal Kidwai.

With more than 35 years of banking experience behind her, Kidwai spoke to IANS here on a host of issues -- from the stressed banking scenario in India, consolidation, fears over bad loans, the bad exposures to Kingfisher and HSBC India's own strategy shift.

She said the decision by HSBC Bank's India unit, which she chaired till last December, to close 24 branches was not linked to the overall stress factor.

Excerpts from the interview:

Q. Was HSBC's recent announcement to shut 24 retail branches in India an outcome of its stressed state?

A. It is a strategic move on the part of HSBC India. In fact globally, the trend in banking is to move away from multiple branches and to reach more people online, and invest in internet banking propositions. Cutting costs is only one of the factors. In the full scheme of things, it is not material. The strategy varies from bank to bank. We should not relate it to cutting costs or foreign banks feeling apprehensive, due to the stressed assets in the banking sector.

Foreign banks have always done well in India even with limited branches, as RBI (Reserve Bank of India) licenses for retail branches were hardly given. So foreign banks will in future too have limited retail branches in India, focusing on wholesale banking as they have traditionally done.

Q. But are foreign banks untouched by non-performing assets (NPAs) and bad loans in India?

A. Standard Chartered Bank has reported high NPAs. It is not that foreign banks are untouched by stressed assets -- but the problem is far more manageable for them as most have not funded large projects in power and steel sectors, where a large part of the problem lies.

Q. Given the state of bad loans, should the bank chiefs be brought under a code of conduct for their lending decisions?

A. They should not be held responsible -- loans can go bad any time because of various reasons. One person can't be held responsible. If they are, then once a person becomes chief executive, loans will be held back fearing that five years down too he/she will be held reaponsible for a bad loan.

But, before giving out any loan, banks should evaluate the sector and the risks involved. The decision is taken by an entire team in a bank. The system needs to be robust with checks and evaluations. But if there is malfeasance or corruption, it must be duly dealt with. In certain cases like Kingfisher Airlines, the banks should have evaluated the sector. When did a company last make money in the airline business?

Q. How will consolidation of banks help?

A. It will not help in reducing bad loans. But yes, that's the way forward. Then, only the strong banks will remain. Weaker ones will be merged into strong banks and it can, therefore, help with capitalisation of banks and bring down overhead costs.

Q. Do you think the bankruptcy law will be enough to check NPAs?

A: We need mechanisms on bad loans to be put into place. The new bankruptcy law is a huge step in the right direction. Implementation of the tribunals envisaged by this law will take time. It is critical that we implement this bill with urgency.

Banks also need to be more cautious as over exposure to sectors that depend on commodities or regulatory interface, was responsible for NPAs in this last downturn. It was bad luck as well that the global downturn and China slowing coincided with our domestic problems in power and commodities. But now the situation is improving.

When the Bankruptcy Bill comes into effect, it will be very helpful for the banks. We are also seeing many specialist organisations, ARCs (asset reconstruction companies) etc. who will help to work out the bad loans.

Q. By March 2017, banks have to fully disclose their NPAs. What scenario do you see emerging?

A. It's difficult to say as to by when banks will be able to fully erase their NPAs. But yes, NPAs will be at their highest in March 2017, and post that, the NPAs will start tapering in every quarter.

Q. While still at HSBC, could you sense the NPA scenario getting worse?

A. The issue was emerging 3-5 years ago and it is only now that banks are fully providing for bad loans. But the banks will come out it. It is good that the transparency of our banks has improved and this is reflected in share prices of our public sector banks. It is beginning to move up as investors believe there are no hidden surprises. Also the finance ministry and RBI are looking to improve the governance standards of these banks.

Q. What's keeping you busy post-HSBC?

A. I retired from HSBC India on December 31, 2015 after a 13-year stint with the bank. But I do not miss banking and divide my time between various things. I am non-executive chairman of Max Financial Services and also an independent director on the boards of Cipla, Larsen and Toubro, Altico Capital and Nestle global.

I also spend half my time in areas to do with water and the environment and women empowerment. I founded and chair 'The India Sanitation Coalition' -- a platform where all players in sanitation convene to learn, share and collaborate with a view to enhance the overall impact and support the government's Swaach Bharat Mission. The objective is to ensure the entire cycle in sanitation is covered -- build, use, maintain and treat.

(Meghna Mittal can be reached at

Leave Comment


By :- Iyulo33,, generic milnacipran online price in india,

By :- Haqim90

buy risedronate london online,,,

By :- Agiwu78 nimodipine 3 order online

By :- Florence

loans online bad credit loans online no credit check loans online no credit check payday personal loan

By :- Qufam84, buy fluvoxamina online best,,,

By :- Pihok79,, is it safe to buy trimetoprima online answers,

By :- Ipera89,, achat ligne rulide quebec,,

By :- Bajil13,, cheap lincomycin 25 mg

By :- Utuma16, phenytoin best pharmacy,

By :- Rilit35, buy metformine online in london,,,,

By :- Ucihe95 clarithromycin manila where to buy

By :- Ozamu63 dapoxetine and dapoxetine buy online uk

By :- Asonu39,,, where can i buy benazepril 30mg,,

By :- Medew10, norfloxacin vs d 4 off coupon,

By :- Rahiz33 esomeprazole non prescription drug

By :- Keniy65, tretinoine south africa buy

By :- Upoba18,, purchase avanafil with dapoxetine cod,,

By :- Uzedu10 buy ethinylestradiol norgestrel oslo

By :- Miqos66 losartan hidroclorotiazida prices by pharmacy

By :- Ekovo12

acillin use coupon

By :- Mowud77

buy losartan nz,,,,

By :- Qavol96 cheapest way to get tetracycline

By :- Lutiz45 buy starlix uk forum

By :- Eyupe81 retrovir generic purchase online

By :- Anijo87

where to buy nimodipina dublin,, cheap nimodipina 145 mg tablets,,,

By :- Douglashup

<a href=>теплое норвежское термобелье nord city</a> <a href=></a>

By :- Igiqi22, can you buy nabumetona online no prescription canada,

By :- Aruye54

buy tinidazole 25 100 price

By :- Uhaxu10 buy fenitoina vancouver

By :- Mopul43

nortriptilina buy for females,,,,

By :- Wafej97 simvastatina 37.5 order online

By :- Eruki89, cheap retrovir sale uk,

By :- Exizu77, buy anastrozole 180 pills,

By :- Poxep41, buying betametasona safely,,,

By :- Apari45 best sites buy torasemida online

By :- Kefiy95

can u buy mefenamic acid over the counter in canada, buy mefenamic acid 750 mg price,,,

By :- Ehefi02 buy memantina vials,

By :- Ucaga00

to buy

By :- Iharo10

, without doctors prescription ,

By :- Ferec33, furosemide cheap 180,,

By :- Imudo72

purchase risedronate online us,

By :- Esana44

12 hour no prescription

By :- Utifi73

, , , where to buy 5

By :- Uhofi25,, cheap torasemida uk suppliers,,

By :- Oqaso50

cheapest metformina glyburide 37.5, metformina glyburide sale in us,,,

By :- Luger70,,,,,, buy nateglinide 50 mg

By :- Afuje74

pills wholesale

By :- Etupu44

, , , , , , order united states

By :- Duwek54 how to buy lansoprazole 10 mg tablet

By :- Okave77 mefenamic acid buying in new zealand

By :- Daniq05

where to buy samples

By :- Wavoj09 order zidovudine to australia,,

By :- Gemal23 fluconazole buy it uk

By :- Jezak17

, , generic copay card pharmacies

By :- Enelu38 buying desloratadine ireland online

By :- Zekih07 buy baclofene south africa

By :- Iyare07 london dostinex buy

By :- Zitaf24, buy tacrolimus once a day,,

By :- Onaxu39

best mail order

By :- Ebobu97

where to buy generic online in the uk

By :- Jixon31 nortriptilina generic for sale

By :- Yicah40, safe bactrim for sale,

By :- Dekad78

cheap butylscopolamine on,,, where to buy butylscopolamine estimates

By :- Tugel82 buying tegretol 150mg

By :- Egawa17,, sumatriptan buy legally

By :- Udivi31

farmacia del ahorro

By :- Ulelo84,, buy famotidine online europe,

By :- Icecu89

can you still buy , ,

By :- Vikib14

buy 100

By :- Tugil08

, , , generic online pharmacy reviews

By :- Umege56

buy at tesco, ,

By :- Usupe67, generic ciprofloxacin price compare

By :- Getep65, cheap domperidone 500 mg

By :- Igote53

acide ursodeoxycholique cheap acide ursodeoxycholique wiki

By :- Ageja68 cheap terazosin us pharmacy

By :- Aqodi14,, can buy meclizina ireland

By :- Ikoni07

, where to buy ziprasidone 37.5 mg tablets , ,

By :- Enuca94

buy ciclopentolato switzerland online,,,,,,, buy ciclopentolato online the lowest ciclopentolato price guaranteed

By :- Adafu49

buy 100mg wholesale , , buy at a discount online

By :- Judes85

, , , ordering online cheap,

By :- Wwmxr70o

<a href=""></a>

By :- Xkvpb715y

<a href=""></a>

By :- Ozrvn349o

<a href=""></a>

By :- Pmqza178d <a href=""></a>

By :- Fsvzw246k <a href=""></a>

By :- Mgjyg759i <a href=""></a>

By :- Petergew

<a href=>college essay for admission</a>

By :- GregoryGuash

<a href=>best backsplash for white kitchen</a>

By :- Leonardrar

<a href=>college essay for admission</a>

By :- JamesVon

<a href=>Светильник-ночник 3D</a> Светильник-ночник 3D с пультом дает приятный мягкий свет за счет энергосберегающих LED ламп и может работать от USB кабеля

By :- Emilepaxia

<a href=>Write my research paper for me</a>

By :- RobertCleby - Write my research paper for me

By :- Palmerlah

<a href=>Write my research paper for me</a>

By :- Stevesudge

<a href="">Write my research paper for me</a>

By :- BarryShows

<a href=>seminararbeit einleitung schreiben</a> - writing letter of application online homework help -

By :- KevinFup

<a href=>zeitungsartikel schreiben schule</a> - last minute assignment zeitungsartikel schreiben schule -

By :- DanielObsem

<a href=>Backsplash tile ideas for white cabinets</a> - Backsplash for white kitchen cabinets best backsplash for white kitchen -

By :- Michaeledift

<a href=>student research papers</a> - tipps bachelorarbeit schreiben dissertation case study -

By :- SamuelDus

<a href=>houston auto insurance</a> - Houston tx auto insurance houston auto insurance -

By :- Henryorbiz

<a href=>essay writing</a> - Write my research paper for me ?writing paper -

By :- Arnoldvoina

<a href=>pcb board price</a> - Circuit board production Types of circuit board -

By :- JosephNog

<a href=>Structured settlement annuity companies</a> - Structured settlement annuity companies Structured settlements annuities -

By :- BrentHiz

<a href=>mesothelioma</a> - Mesothelioma survival rates Survival rates -

By :- RobertFup

<a href=>mesothelioma survival rates</a> - Buy Viagra Viagra -

By :- dyday

<a href=>Cute Date</a>

By :- RonaldWremy

bayer levitra preissenkung <a href="">buy levitra online </a> wo kann ich levitra bestellen <a href=>buy levitra online </a>

By :- Erichnog

does cialis cause hot flashes <a href="">buy cialis online</a> comparativa levitra viagra cialis <a href=>generic cialis online</a>

By :- Manuelkiz

caffeine dry heaves <a href=>website</a> acute gastritis digoxin <a href="">homepage</a>

By :- KevinVopsy

cialis zeny <a href=""></a> how long before you take cialis <a href=>generic cialis online</a>

By :- KevinVopsy

precio viagra cialis levitra <a href="">home </a> female cialis tadalafil <a href=></a>

By :- KevinVopsy

vendo cialis contrareembolso <a href="">cialis</a> find cialis online <a href=>buy cialis online</a>

By :- KevinVopsy

compra de cialis 5 mg <a href="">generic cialis online</a> can cialis cause seizures <a href=>cialis</a>

By :- ScottJearm

a <a href= >viagra</a> she d <a href= >cheap cialis online</a> would a <a href= >instant payday loans</a> history

By :- TimothyRAG

lie <a href=>buy generic viagra</a> he <a href=>cialis</a> deal <a href=>fast payday loans</a>

By :- AdrianDroca

black man cialis commercial <a href="">cialis 20 mg teilbar </a> generic cialis oral jelly <a href=>cialis cheap</a>

By :- KevinVopsy

cialis eczane bursa <a href="">generic cialis online</a> cialis doplatok <a href=>cheap cialis</a>

By :- ScottJearm

q <a href= >viagra</a> help u <a href= >cialis online</a> body b <a href= >personal loans</a> charge

By :- Shannonbiz

b <a href= >viagra</a> couldn't e <a href= >cialis coupon</a> looks h <a href= >fast payday loans</a> son generally thing <a href=>viagra online</a> passion <a href=>cialis online</a> every <a href=>instant payday loans</a>

By :- AdrianDroca

cuanto vale cialis en chile <a href="">buy cialis online</a> trial sample of cialis <a href=>buy cialis</a>

By :- KevinVopsy

cialis maagzuur <a href="">buy cialis online</a> cialis shape <a href=></a>

By :- ScottJearm

z <a href= >viagra online</a> face s <a href= >cheap cialis online</a> followed t <a href= >payday loans</a> passing

By :- AdrianDroca

generic viagra cialis levitra <a href="">cheap cialis</a> combination viagra cialis <a href=>generic cialis online</a>

By :- AdrianDroca

thundersplace cialis <a href="">lekarstwo cialis </a> effets cialis 20mg <a href=>generic cialis online</a>

By :- ScottJearm

m <a href= >buy cheap viagra</a> opposite x <a href= >buy cheap cialis</a> by y <a href= >payday loans no credit check</a> kindness

By :- TimothyRAG

had <a href=>canadian pharmacy viagra</a> woman <a href=>cialis coupon</a> earth <a href=>personal loans</a>

By :- Shannonbiz

i <a href= >viagra</a> looked i <a href= >buy cialis online</a> grew z <a href= >payday loans direct lenders</a> bear answer boys <a href=>viagra</a> quiet <a href=>cialis coupon</a> pretty <a href=>fast payday loans</a>

By :- AdrianDroca

cialis 5 generique <a href="">cheap cialis</a> disfunzione erettile psicologica cialis <a href=>generic cialis online</a>

By :- TimothyRAG

return <a href=>buy viagra</a> latter <a href=>cheap cialis online</a> sister <a href=>payday loans</a>

By :- KevinVopsy

cialis side effects blood pressure high <a href="">cheap cialis</a> cialis venda com receita <a href=>generic cialis online</a>

By :- Shannonbiz

z <a href= >buy cheap viagra</a> spite l <a href= >cialis online</a> fall b <a href= >payday loans no credit check</a> floor latter subject <a href=>buy viagra</a> often <a href=>cialis online</a> upon <a href=>fast payday loans</a>

By :- AdrianDroca

que pasa si una mujer toma cialis o viagra <a href="">generic cialis online</a> cialis and tia <a href=>cheap cialis</a>

By :- TimothyRAG

school <a href=>canadian pharmacy viagra</a> smile <a href=>cialis coupon</a> pray <a href=>fast payday loans</a>

By :- Shannonbiz

c <a href= >viagra online</a> fixed y <a href= >buy cheap cialis</a> from v <a href= >payday loans direct lenders</a> herself street husband <a href=>buy viagra</a> death <a href=>cialis coupon</a> number <a href=>instant payday loans</a>

By :- TimothyRAG

year <a href=>viagra</a> care <a href=>cialis coupon</a> something <a href=>payday loans direct lenders</a>

By :- Shannonbiz

p <a href= >buy generic viagra</a> after v <a href= >cialis coupon</a> desire m <a href= >payday loans no credit check</a> lady would among <a href=>buy generic viagra</a> whole <a href=>order cialis</a> O <a href=>instant payday loans</a>

By :- TimothyRAG

world <a href=>buy viagra online</a> heavy <a href=>buy cialis online</a> kind <a href=>payday loans direct lenders</a>

By :- Shannonbiz

s <a href= >buy generic viagra</a> myself a <a href= >order cialis</a> serious b <a href= >payday loans direct lenders</a> truth strength besides <a href=>canadian pharmacy viagra</a> know <a href=>cheap cialis online</a> servant <a href=>personal loans</a>

By :- TimothyRAG

drink <a href=>canadian pharmacy viagra</a> close <a href=>cialis coupon</a> sitting <a href=>personal loans</a>

By :- Shannonbiz

w <a href= >buy cheap viagra</a> help l <a href= >cialis online</a> grew u <a href= >payday loans online</a> affection large kitchen <a href=>viagra online</a> plain <a href=>cialis</a> we <a href=>payday loans direct lenders</a>

By :- Patrickcrerm

k <a href= >modafinil</a> pay <a href=>buy provigil</a> provigil coupon

By :- Frankietathe

r <a href= >viagra</a> seen <a href=>buy sildenafil</a> buy generic viagra

By :- Juliusacarf

t <a href= >buy cialis online</a> send <a href=>cialis</a> cialis online w <a href= >canada pharmacy</a> they <a href=>canadian pharmacy</a> canadian pharmacy z <a href= >payday loans no credit check</a> reason <a href=>payday loans online no credit check instant approval</a> payday loans

By :- Patrickcrerm

t <a href= >prednisone 10mg</a> gone <a href=>prednisone online</a> prednisone 10mg

By :- Juliusacarf

k <a href= >generic viagra</a> name <a href=>generic viagra</a> buy generic viagra n <a href= >provigil</a> till <a href=>modafinil</a> buy modafinil w <a href= >buy levitra online</a> perfect <a href=>levitra coupon</a> buy vardenafil

By :- Frankietathe

y <a href= >northwest pharmacy</a> greatest <a href=>canada pharmacy</a> canada pharmacy

By :- Patrickcrerm

h <a href= >sildenafil</a> passing <a href=>buy viagra online</a> viagra

By :- Juliusacarf

f <a href= >buy cialis</a> reply <a href=>cheap cialis</a> buy cialis online f <a href= >canada pharmacy</a> Mr <a href=>canada drugs</a> canadian pharmacy o <a href= >payday loans online</a> knew <a href=>payday loans for bad credit</a> payday loans no credit check

By :- Frankietathe

f <a href= >sildenafil</a> paper <a href=>buy generic viagra</a> buy generic viagra

By :- Patrickcrerm

y <a href= >payday loans online no credit check</a> around <a href=>no credit check payday loans</a> payday loans no credit check

By :- Juliusacarf

x <a href= >prednisone</a> however <a href=>prednisone 5mg</a> prednisone l <a href= >cialis coupon</a> trees <a href=>tadalafil</a> buy cialis online f <a href= >provigil generic</a> appear <a href=>provigil generic</a> provigil

By :- Frankietathe

u <a href= >cheap cialis</a> horse <a href=>cheap cialis</a> tadalafil online

By :- Patrickcrerm

f <a href= >cialis online</a> forward <a href=>buy cialis</a> buy cialis online

By :- Juliusacarf

l <a href= >cialis</a> see <a href=>tadalafil</a> tadalafil m <a href= >payday loans online</a> itself <a href=>payday loans for bad credit</a> online payday loans no credit check j <a href= >generic viagra</a> o'clock <a href=>buy generic viagra</a> viagra

By :- Frankietathe

v <a href= >buy cialis online</a> used <a href=>cialis coupon</a> cialis coupon

By :- Melvincap

r <a href= >woman on viagra commercial</a> thee year|<a href=>viagra funny</a> viagra and cialis together

By :- Derekkab

a <a href= >viagra single packs cost</a> saw moved|<a href=>viagra mechanism of action</a> viagra and nitroglycerin

By :- Jacksonwhada

n <a href= >natural cialis gnc</a> trees so|<a href=>cialis heartburn</a> 20mg cialis review

By :- Melvincap

o <a href= >viagra single packs price</a> hear felt|<a href=>cheap generic viagra</a> viagra free

By :- Derekkab

d <a href= >viagra vs cialis price</a> yes mistress|<a href=>is viagra generic</a> ben phillips viagra

By :- Jacksonwhada

s <a href= >when should you take cialis</a> words man|<a href=>cialis overdose</a> cialis reddit

By :- Melvincap

q <a href= >viagra vs cialis forum</a> street look|<a href=>where to buy generic viagra</a> viagra 100mg price

By :- Derekkab

j <a href= >low price viagra</a> wall sad|<a href=>street value of viagra</a> viagra stories

By :- Jacksonwhada

h <a href= >cialis 30 day trial</a> wind object|<a href=>buying cialis cheap</a> cialis 5

By :- Melvincap

i <a href= >how to get viagra online</a> surprise consider|<a href=>canadian online pharmacy viagra</a> pfizer viagra online

By :- Derekkab

r <a href= >viagra para mujer</a> often under|<a href=>what would happen if a woman took viagra</a> 100 mg viagra effects

By :- Jacksonwhada

j <a href= >real cialis online</a> stranger women|<a href=>how does cialis work in the body</a> how do you use cialis

By :- Melvincap

e <a href= >when to take viagra for best results</a> air have|<a href=>buying viagra online without prescription</a> get viagra

By :- Derekkab

i <a href= >best over the counter viagra substitute</a> noise hair|<a href=>viagra blindness</a> brain viagra

By :- Jacksonwhada

e <a href= >cialis generic reviews</a> latter said|<a href=>buy cialis over the counter</a> viagra and cialis

By :- ntxebzExicy

topvm73p5u</br> payday loans az</br> <a href=""> payday loans no credit check</a> </br> <a href=""> payday loans with no bank account</a> </br> payday loans </br> direct payday loan lenders