Making a strong case for expeditious adjudication of debt recovery cases, Finance Minister Arun Jaitley today said the doctrine of natural justice of giving opportunity to defaulters to defend themselves need not be carried to an "unnatural extent".
Domestic rating agency Icra has said the decision to extend provisions of the Sarfaesi Act to loans given by non-banking finance companies will help bring down delinquencies and may result in cheaper funds for borrowers.
Finance Minister Arun Jaitley ruled out any waiver in the event of education loan defaults, saying "some compassion" has to be shown if someone is unemployed and till he gets a job, but the loan cannot be written off.
Is the Insolvency and Bankruptcy Bill the nirvana which banks in India have been waiting for? Not in the next two years is the short answer, and may be not even be in the long-term unless there is an unprecedented zeal to implement it, says CNBC-TV18's Latha Venkatesh.
On paper, the Bankruptcy Code is an earth-shattering law. Let's hope it will be implemented that way.
The finance ministry has convened a meeting of senior bankers of public lenders dealing with large loan defaults next week as part of an exercise to clean up balance sheet of banks.
The bank has identified 2500 properties to be auctioned under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).
While bad asset recovery norms are brought on par with banks, NBFCs should also be allowed recovery tools such as being brought under the SARFAESI Act or have access to the debt recovery tribunal, a top executive with an NBFC said, while commenting on the RBI's latest move to tighten norms.
HDFC reported what was considered mostly an inline set of numbers in a challenging quarter for financial companies.
In an exclusive to CNBC-TV18, sources say the Sebi board may announce rules for angel funds on June 25.
In a rare act of aggression, lenders to Kingfisher Airlines have invoked the personal guarantee offered by promoter Vijay Mallya.
SL Bansal, CMD of Oriental Bank of Commerce is of the opinion that the new amendments will strengthen the financial institutions and give them more power to deal with NPAs, he added.
The Lok Sabha today approved an amendment bill to make easier recovery of bad loans by banks amid walkout by the BJP, Left and some other parties after the government rejected their demand for referring it to the Standing Committee.
The government today approved amendments to the SARFAESI and debt recovery acts to enable banks to effectively deal with the menace of bad loans and also encourage them to disburse credit freely to home and corporate loan seekers.
By: Jay Parikh, Bharucha & Partners
It is touted as India's most successful Debt Restructuring mechanism, but recent events beg the question – Does the CDR mechanism need reinventing?