The new set of rules are aimed at creating a “harmonised and simplified generic framework” for resolution of stressed assets in view of new bankruptcy regulations.
SBI’s massive restructuring of standard loans are finally coming home to roost with a vengeance.
The prime minister used his recent speech in Parliament to mount both an attack on the opposition and a defence of his government. But how well do his claims stack up? The Wire breaks it down.
According to banking sector experts, write-offs help bring down their tax burden.
More distressed debt private equity funds focused on India have raised more money in the last few months than in the last ten years put together.
Although the state-run power sector lender doesn’t follow RBI guidelines on loan restructuring norms yet, the CAG has in the past pointed to gaps in its due diligence process.
From Janardhan Poojary to Crony Capitalism: India’s Bank Recap Must Be Accompanied by Further Reform
While there are several domestic and international examples of recapitalisation bonds having worked, none of them have prevented further NPAs from piling up.
While it will almost certainly impact the fiscal deficit, this needs to be accompanied by an aggressive recovery of loans so that moral hazard doesn’t set in.
The total stressed loans of the banks – including non-performing and restructured or rolled over loans – rose 4.5% in the six months to end-June.
Reserve Bank of India data shows that as of March 2016, the non-priority sector bad loans stood at Rs 4.1 lakh crore.
If the finance ministry is serious about restoring the health of the banking sector, it cannot afford to discriminate between those that won coal blocks and spectrum during the NDA rule and the other defaulting companies.
A weekly column on the sessions of parliament.
The RBI refused to make the list of loan defaulters public despite an order by the Supreme Court in 2015 to make this information public.
The ordinance to amend the Banking Regulation Act will give a big boost to the government’s efforts to cut down on non-performing assets in the banking sector.
The amendment to the Banking Regulation Act will likely empower the RBI to prod banks into recovering non-performing assets (NPAs) from loan defaulters.
The three year-long CBI investigation into Jatin Mehta’s Winsome Diamonds has finally come to an end. While there are a number of questions still remaining, will the guilty be punished?
The discourse around non-performing assets (NPAs) remains largely focused on private corporations, while NPA concentration in public sector undertakings flies under the radar of scrutiny.
While the bank has denied rumours of a potential merger, what issues need to be considered? The bank’s operations and the state of its loans needs to be minutely examined.
The ripple effects of demonetisation are only beginning to show. If the cash crunch continues, production, employment and investment will be affected in both the informal and formal sector.
Cases are delayed as courts have not been using statutory remedies available to them – an issue that has been noted by the Supreme Court and ex-RBI governor Raghuram Rajan.
Patel’s nomination has been hailed as an example of continuity of Raghuram Rajan’s policies; if this is so, then what was the need to let Rajan go in the first place?
Three Public Sector Banks With High Non-Performing Assets Rejected Most RTI Requests in 2014-15: Study
The high rejection rate could mean the banks had something to hide and may be a reflection of the government’s current trend of restricting the access to information.
With the Indian banking sector struggling with the burden of bad loans, will the government undertake radical reforms to ease the stress?
Finance Minister Arun Jaitley made a counter argument that India’s economy is far more resilient today than it was in 2008. He probably knows, not many in Davos would have agreed with him.
When the Modi government came into power in May 2014, it found itself inheriting a host of legacy issues resulting from the after-effects of global recession and UPA II’s financial misadventures. There was a deep macroeconomic instability brought about by the high fiscal and current account deficits, raging […]
The ‘sin’ of public sector banks is that they lent heavily to infrastructure projects that never took off. The way forward is to provide for loan losses, infuse capital, fix their management and governance – and look to revive lending.