Some banks make record provisions against bad loans

PCR is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. Some banks make record provisions against bad loans.Banks clean up books as NPA additions slow over the past year.

Universal debt relief scheme on cards for small borrowers

Debt Relief Scheme structured under IBC, micro-enterprises, small farmers, artisans, cottage industries to benefit.

Haircut in Loan Recovery

WHAT IS HAIRCUT IN LOAN RECOVERY ? 1. In banking, haircut means the difference between the actual dues form a borrower, and the amount he settles with the bank. 2. When there is no hope of loan recovery, bank will write-off it as one time settlement. It is better to recover something rather than losing…

RBI’s revised guidelines for resolution of stressed assets likely before May 23

RBI’s revised guidelines for resolution of stressed assets likely before May 23

Swiss Challenge Method – Enabling Low Vintage and Debt aggregation

In Indian Express dt 24th April 2019, a news has been flashed as under: “Central Bank of India on Friday put up two non-performing assets (NPAs) worth Rs 251 crore for sale through the Swiss challenge method.” “The auction for Srinagar Banihal Expressway (Rs 200 crore) and Maa Mahamaya Industries (Rs 51 crore) are being…

PNB separates loan appraisal, monitoring to reduce credit risk

PNB today said it has segregated its loan appraisal and monitoring system and created various verticals to reduce credit risk, in the aftermath of the Rs 14,000-crore Nirav Modi fraud.

Creditor need not give notice of default to corporate debtor: NCLT

The Mumbai Bench of the National Company Law Tribunal (NCLT) has observed that prior notice is not required to be given by a creditor under the Insolvency & Bankruptcy Code (IBC) to establish that a corporate debtor has defaulted in making repayment.

According to Sec 3(12) of the IBC, default means non-payment of debt when the whole, a part or an instalment of the debt becomes due and is not repaid by the debtor/ corporate debtor as the case may be, said the tribunal.

NPA recovery: ‘Banks’ internal processes not in sync with external environment’

Internal processes in banks have still not caught up with the changes in the external environment relating to the recovery of non-performing loans

Wilful defaulters form 14% of PSB bad loans

Around 14% of the bad loans in public sector banks (PSBs) are due to wilful defaulters. The total gross non-performing assets (NPAs) of 21 PSBs stood at Rs 7.33 lakh crore as on September 30, 2017. Of this, Rs 1.01 lakh crore of loans were termed as those in wilful default.