Slippages

Rather than “clues”, these may be slippages – moments when Potter forgot to recast the story in her Lake District setting and slipped back into the world of Brer Rabbit.

Former RBM and Ministry of Finance and Economic Affairs economist Lesley Mkandawire says there are several factors that lead to ECF slippages which Malawi is still vulnerable to.

The bank has hired newer hands after it decided to move the collection processes in-house from July, which has resulted in the elevated slippages, while in the case of MFI, it is about over-leveraging among borrowers that has led to higher setbacks.

The Centre seems to be worried about revenue slippages this fiscal, but it could push non-inflationary capex spending.

Fiscal slippages will weigh heavy on the mind of the government.

Its gross slippages stood at ₹24,587 crores during the quarter and its provision coverage ratio increased to 72.7 per cent.

The slippages from the loan book were at Rs 3,418 crores, while from investment exposure were at Rs 502 crores.

While improving spread led to 6 bps of positive delta qoq, impact of higher slippages (~7 bps) was offset by margin benefit from capital raise (~7 bps).

The fresh slippages have also come down and as a result, the system-level provision coverage ratio has rose to 60.9 percent during the period.

The remaining ₹200 core are retail loan slippages.

This may result in large fiscal slippages or cutbacks in expenditure at the state level towards the end of this financial year.

A political crisis in early 2013 led to policy slippages in the fiscal and financial areas.