Bank NPAs decline for the first time in seven years. As data tariffs rise, consumers opt for monthly recharges.
Good News on Bad Debt: Reversing an upward trend that lasted seven years, non-performing assets reported by banks are now declining, the RBI has said. A conducive policy environment and the Insolvency and Bankruptcy Code (IBC) helped banks combat the bad loans crisis.
The gross NPAs declined to 9.1% in March 2019 from 11.2% in March 2018 as recognition of bad loans neared completion, the Central Bank's report noted. "Decline in the slippage ratio as well as a reduction in outstanding GNPAs helped in improving the GNPA ratio. While a part of the write-offs was due to ageing of loans, recovery efforts received a boost from the IBC. The restructured standard advances to gross advances ratio began declining after the asset quality review in 2015 and reached 0.55% at end-March 2019," the report stated. ToI
Adapt and Thrive: Indian telcos recently raised tariffs by c. 40%, and this has forced consumers to change their recharging patterns. Monthly plans are becoming more popular as money-sensitive customers embrace these relatively cheaper plans at the expense of their long-term counterparts to save money.
One implication of this trend is that consumers are less likely to be bound to one provider and feel more inclined to change operators given that their packages are only a month-long. This is why telcos have been offering discounts on 12-month recharge plans. ET Telecom News
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