India's Bad Loan Rate Soaring to Near 10% Dwarfs China's

[onebyone]

India's Bad Loan Rate Soaring to Near 10% Dwarfs China's
Bank regulators taking steps to help lenders shore up capital
By
Lianting Tu
and
Anurag Joshi
23 สิงหาคม 2560 08:45 GMT+7

Ballooning non-performing loans at Indian banks are grabbing global attention, while non-performing assets at Chinese peers appear stable. India’s capital market regulator has directed listed companies to report loan and bond defaults within one working day, and authorities are discussing a “package of measures” to help state lenders shore up capital. New mechanisms for dealing with debt disputes and an overhaul in India’s bankruptcy laws will improve bad asset resolution, and non-performing loans have peaked, according to Rajesh Mokashi, managing director at CARE Ratings Ltd.

https://www.bloomberg.com/news/arti...d-loan-rate-soaring-to-near-10-dwarfs-china-s

 

[AndrewJin]

Supa Powa style

 

[beijingwalker]

They need another demonetization I guess, maybe they should do that every year.

 

[beijingwalker]

Yawn - what all you guys dig up to get over your fiasco at Dokhlam.

For Indians that may be the only issue, but for we Chinese we have other things as well, especially our country's overall well-being.

 

[AndrewJin]

They need another demonetization I guess, maybe they should do that every year.

Agree，RSSers are so intellectually weak.

For Indians that may be the only issue, but for we Chinese we have other things as well, especially our country's overall well-being.

They basically have no life

 

[Navin A]

hahahaha Chinese bot's trying to be funny! frustration is growing at an alarming rate, like your debt ceiling and national Gross debt... you really need to introspect before you start pointing fingers.

India is a small fry compared to China, who is a master of economic manipulation

 

[sinait]

For Indians that may be the only issue, but for we Chinese we have other things as well, especially our country's overall well-being

Indians are one trick ponies.
.

 

[Dungeness]

China's Trillionaire Government Nearly Indestructible
https://defence.pk/pdf/threads/chinas-trillionaire-government-nearly-indestructible.513543/

 

[Navin A]

For Indians that may be the only issue, but for we Chinese we have other things as well, especially our country's overall well-being.

Your wrong, China is an antagonizer, but India does not really care for your Hu Ha's yeah, in essence, we have enough on our plate as it is... The average bloke does not have time in their daily lives worrying about the nuisance across the border.

So don't make yourself seem so important when currently you are the least of our concerns!

China's Trillionaire Government Nearly Indestructible
https://defence.pk/pdf/threads/chinas-trillionaire-government-nearly-indestructible.513543/

Oh so sweet, but I beg to differ, This is the start of a chain reaction.

https://www.moodys.com/research/Moo...-rating-to-A1-from-Aa3-and-changes--PR_366139

Singapore, May 24, 2017 -- Moody's Investors Service has today downgraded China's long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable from negative.

The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows. While ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt, and the consequent increase in contingent liabilities for the government.

The stable outlook reflects our assessment that, at the A1 rating level, risks are balanced. The erosion in China's credit profile will be gradual and, we expect, eventually contained as reforms deepen. The strengths of its credit profile will allow the sovereign to remain resilient to negative shocks, with GDP growth likely to stay strong compared to other sovereigns, still considerable scope for policy to adapt to support the economy, and a largely closed capital account.

China's local currency and foreign currency senior unsecured debt ratings are downgraded to A1 from Aa3. The senior unsecured foreign currency shelf rating is also downgraded to (P)A1 from (P)Aa3.

China's local currency bond and deposit ceilings remain at Aa3. The foreign currency bond ceiling remains at Aa3. The foreign currency deposit ceiling is lowered to A1 from Aa3. China's short-term foreign currency bond and bank deposit ceilings remain Prime-1 (P-1).

https://www.cnbc.com/2017/06/28/chi...ising-doubts-over-yellens-crisis-remarks.html

China recorded a government debt equivalent to 46.20 percent of the country's Gross Domestic Product in 2016. Government Debt to GDP in China averaged 29.10 percent from 1995 until 2016, reaching an all time high of 46.20 percent in 2016 and a record low of 20.40 percent in 1997.

https://tradingeconomics.com/china/government-debt-to-gdp

 

[ashok321]

Bad loans or non performing assets is a huge problem for Indian banks and RBI.
Indian Industrialists keep on borrowing without adequate guarantee or collateral.

Even Anil Ambani, Modi's billionaire friend has such problem, just think of how awful the situation is in India:
Reliance Communications: Over 10 banks red flag Anil Ambani's .
RCom Chariman Anil Ambani Pledges 'Largest-Ever Debt Reduction

There are more in the list:
RBI identifies 12 mega defaulters for insolvency ... - The Indian Express

But this vicious circle will never stop in India because the top Industrialists like Ambanis and Adani are Modi's friends and they are from his native state aka Gujarat.

This is the moral face of India's crook/dishonest PM Modi. One who is seeing this mess under his nose but does not want to take any action. for if he did, Ambanis wont be able to borrow.

The money flowing to Ambanis through Indian banks is that of tax payers like my kith & kins in India and many other.

I have the overall picture of India. Thats why I don't see any rapid progress in India in a future.

The fastest India GDP myth is being busted. Now hardly any difference between the two = India and China, while China's economy is five times that of India:

https://twitter.com/x/status/897925942349361152

Myopic Modians have only one goal here, to lie in favor of Modi, whether wrong or right, rain or shine, to muddy the PDF water.

I am an Indian and I know how my compatriots work.
But the pitiful thing being that they (Modians) are silent on their own dishonest PM.
This country can NOT progress in real terms.

China is a juggernaut while India a peanut.
Just 2 Chinese banks have same revenue as entire revenue of Government of India:

Despite this, these Indians are feeling more superior than the Chinese.
Shame on such thinking. One more reason, India will not progress faster.
Indians are the best braggers, their PM is icing on the cake on such.

 

[SEAISI]

Better than being on welfare like most of the Chinese migrants...

Delusional Indians

No wonder you get your heads bashed in Australia. Not because of your stench, but being retards.

 

[EndangeredSpecies]

I wonder why some Chinese on this forum are so uneducated.

Did anyone care to look at the graph and what it represents? It was bad-loan-rate. Not absolute number of loans or not absolute value of loans.

Let me make it simpler for you...

Read this article :

https://www.cnbc.com/2017/06/28/chi...ising-doubts-over-yellens-crisis-remarks.html

Total internal debt in China is about 3 times that of GDP. That will be about 33.6 trillion dollars. Still smaller whole europe combined, which stands at 97 trillion dollars.
Total internal debt in India is around 2.9 Trillion dollars.

Now about 10 percent of this is bad debt for India. That means 290 billion dollars.
For China, at 2% this will be around 670 billion dollars.

This shows the sheer difference in scales when you look at the whole picture.

Also, Unlike India where this debt is held by private corporates, most of Chinese debt is held by State Owned Enterprises. Which mean, if they go kaput, Chinese govt will have to foot the bill. This makes China's debt a systemic risk. Also, unlike India, accounts of a lot of Chinese banks are never disclosed properly and there is a huge shadow banking system. So, it is almost impossible for someone like bloomberg to even know the complete extant of debt and bad loans in China. We only know the surface.

In case of India, most of these records are open for investigation and the extant of this risk can be estimated. Also, most of this debt is held by private Indian companies and those company's assets will be liquidated and private individuals who are responsible for this will feel the heat. Heck this happened in the case of one of the most publicized Indian billionaire who was running from debt. Selling these assets, a lot of which are in form of commercial land will allow new businesses to replace the old dead ones.

True, banks in both the case will have turbulant times, but unlike China, in case of India it will not be a systemic risk where one company going kaput will topple whole of the financial system.

 

[beijingwalker]

China's Trillionaire Government Nearly Indestructible
https://www.forbes.com/sites/kenrap...ernment-nearly-indestructible/2/#1ed43c4c758c
China got money to burn.

 

[beijingwalker]

I wonder why some Chinese on this forum are so uneducated.

Also, Unlike India where this debt is held by private corporates, most of Chinese debt is held by State Owned Enterprises. Which mean, if they go kaput, Chinese govt will have to foot the bill. This makes China's debt a systemic risk.

The truth is that economists explain that China's debts are also the country's assets cause most of the debts come from companies owned by the government, the government owes itself but not others. China can simply sell the companies and turn the debt into assets. Simply put, you owe your own debt. how big a risk is that?

The whole world owes China money, China also owes money, to herself.

 

[ashok mourya]

33 trillion dollar chinese loan vs 3 trillion dollar Indian loan...are the Chinese high on weed...our basics are very strong unlike Chinese bubble...