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Only two large loans given by public sector banks in the last three-and-a-half years have turned bad, the government has informed the Parliament. In a written response to a question in the Rajya Sabha on December 20, Finance Minister Nirmala Sitharaman said that starting April 1, 2019, and until September 30, 2022, only two loans of more than Rs 100 crore sanctioned by public sector banks had been classed as non-performing.
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Private sector lender Yes Bank on July 23 reported a 50.17 percent year-on-year (YoY) growth in profit after tax (PAT) at Rs 310.63 crore compared with Rs 206.84 crore in the same quarter last year, with a significant fall in bad loan provisions and higher net interest income.
Modi-Sitharaman duo are under virtual seize from both ends: Covid-19 War; and the “Stimulus Package” warriors. The majority are aware that limited means are only available to satisfy numerous claimants. Surely, the government machinery is getting all the inputs on a daily basis from all corners of the country.
Yes Bank Crisis : In a surprise to the business community, the shares of Yes Bank on Monday zoomed over 30 per cent after State Bank of India confirmed that it would pick up 49 per cent stake in the cash-strapped lender for Rs 2,450 crore. While, the scrip witnessed a sharp rise, spiking 29.63 per cent to Rs 21 on the BSE, the NSE jumped 32.20 per cent to Rs 21.35.
"Economy is doing well in difficult circumstances. This will make government go forward with more confidence", asserted Finanace Minister Nirmala Sitharaman while addressing the delegates at a private news channel's awards event in Mumbai yesterday.
The recovery of the Public Sector Banks against NPAs has enlarged in the first half of the current year as compared correspondent period last year. In response to a parliamentary question the Finance Ministry publicized that Public Sector Banks following amendments to the Banking Regulation Act, the Reserve Bank of India directed banks to initiate insolvency proceedings, the PSBs reported recovery of Rs 60713 crores against NPAs, which is double the amount recovered in the corresponding period last year.
Concerning for more than 1600 stalled housing projects and 4.58 lakh stuck housing units, Finance Minister Nirmala Sitharaman on Thursday has decided to create a Special Window to provide priority debt financing for completion of these said projects.
Unfolding catastrophe: What can PMC bank do for its stressed depositors after hiding defaulter HDIL's NPAs for so long?
Amid changing banking landscape of India, the entire industry has undergone a massive transformation that has varied the way financial procedures are carried out, and the way financial institutions operate. The collaboration between finance and the compliance has led to a radical turnaround in several aspects of banking.
Waking ahead in the economic slowdown rising in India, the Reserve Bank has moved up to claim that early recognition and resolution of stressed assets have helped banks contain their Gross Non-Performing Loans ratio at 9.1 percent down from 11.2 percent a year before.
Plunging high over the estimations for the Union Budget, the nation at large seems satisfied for the rural angle provided, uplifting each and every class, sector and model of the society. With no changes in the personal income tax rates made for the individuals, traditional red ‘bahi-khata’ has focused on easing lifestyles, building infrastructure, empowering women, farmers; taking the economy to new heights.
Moving to provide a framework for early recognition, reporting and time-bound resolution of stressed assets, the RBI framed new guidelines dealing with bad loans which are probably creating a threat to the Non-Performing Assets.
Seeking to consolidate the existing framework by creating a single law for insolvency and bankruptcy, the law on IBC came into being in 2015. But the rising complexities aligned seemingly made it look bitter in the community. Citing this the IBBI and the Indian Bank’s Association in the event at Singapore yesterday announced that cross-border insolvency proceedings will soon be serving the international palate.
“Banks are no longer just about strong lockers and a good interest rate on deposits. They have transcended their conventional mandates and are now at the forefront of India's development story”, said Vice President M Venkhaiah Naidu while addressing the intellectuals at the 125th foundation day of the state owned corporation Punjab National Bank at the national capital today.
Increase in the conversion of NPAs into standard accounts and decline in new accounts falling in NPA category show a definite improvement in the lending and borrowing behaviour: Jaitley
Finance Minister Arun Jaitley said that the Government will infuse Rs 83000 crore in the Public Sector banks in the next few months of the current fiscal yesterday. Earlier in the day the Government sought Parliament’s approval to infuse an additional Rs 41000 crore in state owned banks through the second batch of supplementary demands for grants. This is expected to increase a total recapitalisation in the current fiscal from Rs 65000 crore to Rs 1.06 lakh crore.
Responding to a no-confidence motion in the Parliament, Prime Minister Narendra Modi said that the story of NPA started in the country during the Congress tenure and continued till 2014. Prime Minister Modi accused the former Congress government that during its tenure, they started the task of giving a large number of loans to the party's close friends from the government, which led to a major challenge of the NPA against the country.
The Life Insurance Corporation of India (LICI) has been asked to take over the IDBI Bank and pull it out of the financial trap. The LIC has shown its willingness and adopted a resolution to this effect. VIJAY GOKHALE explains the phenomenon.
The Central Banking Institution looks forward to placing 11 Public Sector Banks (PSBs) under 'Prompt Corrective Action' to curb loans by banks in connections with NPAs (Non-Performing Assets).
The Reserve Bank of India (RBI) imposed a penalty of Rs 3 crore on Axis Bank and and Rs 2 crore on Indian Overseas Bank for non-compliance with the directions issued on Income Recognition and Asset Classification norms.
Senior BJP leader Subramanian Swamy today took a swipe at Adani Group Chairmen Gautam Adani and held responsible for stalling banking institution with rising NPAs.
Finance Ministry directed Public Sector Banks (PSBs) to probe all Non-Performing Assets (NPA) accounts of over 50 crore rupees for possible fraud and accordingly report the cases to CBI.
The new guidelines issued by RBI vide ‘DBR.No.BP.BC.101/21.04.048/2017-18’ dated February 12, 2018, are meant for Scheduled Commercial Banks (UCBs, RRBs excluded). The guidelines seek to harmonise and simplify the framework for the resolution of stressed assets, especially in the light of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), replacing its existing guidelines.
Under the Insolvency and Bankruptcy Code (IBC), the move for safeguarding to buy same stressed assets again from the wilful defaulters will be prevented as the Finance Ministry has asked banks to investigate about such defaulters.
