The former chief managers, senior manager/branch manager of the Corporation Bank and other private persons, private firms, including their proprietors and owners, mostly based in Delhi, an advocate and some unidentified persons have been booked by the agency, CBI Spokesperson said here today.
Investors must keep a hawk-eye on these companies that are likely to witness resolution or restructuring in the near future.
Lenders including State Bank of India, Andhra Bank, Allahabad Bank, and United Bank of India have intensified their efforts to tackle bad loans as they wish to ensure faster recovery.
Coastal Gujarat Power Ltd (CGPL), the Tata Power unit which operates the Mundra project, wrote to Gujarat Urja Vikas Nigam Ltd earlier this month offering to retain only 49 per cent stake and operate the project as a contractor provided the procurers buy all the power at higher tariffs.
In comparison, the figure was Rs 90,014 crore at the end of May 2016. Banking continues to be the most preferred sector with the fund managers as they cannot afford to take a bearish call on banking stocks, given the high weightage attached to the index.
The bank which reported a loss of Rs 455.4 crore for the fourth quarter of FY 17, became the sixth state-owned bank to be put under PCA.
After the RBI on Tuesday identified 12 NPAs, which can be taken up under the Insolvency and Bankruptcy Code, bankers now await word on easier provisioning norms.
The RBI has sent bankers the list of 12 stressed accounts that they must resolve through the Insolvency and Bankruptcy Code (IBC).
Some banks are likely to benefit the most from the RBI's decision to invoke bankruptcy in the country's 12 largest NPA accounts.
A risk profile of select industries as at end September 2016 showed that iron & steel and power industries had high leverage as well as interest burden, a report by CLSA says.
BoAML believes larger lenders such as SBI are relatively better placed to benefit from this theme.
Nomura believes a majority of resolution will be around right-sizing of debt (around 50 percent haircut) and forcing sale of non-core assets.
Brokerage house believes as the liquidation or resolutions take place over 6-9 months, need for additional capital at corporate lenders and only ICICI Bank will not need further dilution for these haircuts.
Syndicate Bank, Bank of Baroda, State Bank of India, PNB, Union Bank, Canara Bank and Oritenal Bank of Commerce gained upto 1.5 percent.
The Reserve Bank of India on Tuesday identified 12 stressed accounts for immediate resolution under the Insolvency and Bankruptcy Code. Here is what analysts have to say.
The bank’s non-performing assets (NPAs) now stand at Rs 45,500 crore
Besides NPA resolution and bank finances, the meeting also featured the government's financial inclusion schemes.
The bank's exposure of loans to top 20 largest borrowers declined by 22 percent to Rs 1.82 lakh crore in FY17. This accounted for 11.19 percent of total loans.
Finance Minister Arun Jaitley spoke about GST rates, GDP growth, NPA, and demonetisation, among several other economic issues.
The bank's gross non-performing assets (NPAs) or bad loans were restricted to 13.22 per cent of the gross advances at the end of March 2017, marginally higher than 13.07 per cent a year ago.
Three of the country’s major private sector banks – ICICI Bank, Axis Bank, and Yes Bank – have reportedly been asked by the Securities and Exchange Board of India to explain the reason behind the huge deviation in their bad loans compared to the RBI’s assessment.
As per the report by India Ratings & Research (Ind-Ra), corporates with large refinancing requirements are likely to face severe challenges in refinancing their borrowings during the fiscal.
Finance Minister Arun Jaitley today said the resolution of staggering levels of bad loans is work in progress and some visible action will be taken within next few days under the recently passed NPA ordinance.
The Mumbai property failed to attract bidders even after lowering the reserve price to Rs 93.50 crore.
The government has on various occasions said that it was keen to resolve the bad debt problem.