"IBC transforming credit culture in NewIndia. About Rs 35,000 crore reduction of NPAs of PSBs in Bhushan Steel case. Reduction of NPAs in individual PSBs range from about Rs 500 crore to over Rs 10,000 crore, he tweeted.
The bank had registered a net profit of Rs 111.16 crore in the same quarter of preceding fiscal 2016-17. The bank had reported a loss of Rs 1,263.79 crore in the previous December quarter.
Total income during the quarter however rose to Rs 4,954.20 crore, as against Rs 4,601.89 crore in the same period a year ago, Indian Bank said in a regulatory filing.
The state-run bank has already declared 1,084 wilful defaulters and has published photos of 260 such defaulters in newspapers.
The state-owned lender, which has been at the receiving end of the over Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi, today said it is intensifying the initiative, amid rising concerns over non-performing assets in the banking system.
The MSME ministry has sought an extension of the NPA classification period from the current 90-day window up to 180 days.
As per the revised rules, notified on February 12, banks have to take an immediate decision on resolution once an account shows initial signs of weakness.
Creating a Bad Bank by carving out "sad assets" of so many bad banks and making all these bad banks good again is a very old western world idea.
Several bankers apprised the Committee on Subordinate Legislation of Rajya Sabha about different aspects of non-performing assets and the efforts being made to tackle the menace, sources said.
Both the banks said they will conduct the e-auction on 20th of this month
RBI Governor says the legal powers that RBI has seem to be asymmetric between public sector banks and private sector banks
It is proposed to stipulate a minimum level of 'loan component' in fund based working capital finance for larger borrowers, RBI said
The Enforcement Directorate had reached out to the Belgian government via diplomatic channels and sought a freeze on the accounts.
Mounting NPA has become a big problem for the banking sector. Lenders use write-offs as one of the tools to bring down bad debt on their books by making 100 percent provision.
In an effort to tighten the noose around loan defaulters, ministry of finance has written to all banks to start bifurcating non-performing assets as either wilful default or fraud. Banks have also been asked to prepare a list of loan defaulters for “naming and shaming” in public.
Chennai-based jewellery chain Kanishk Gold Pvt Ltd has defrauded nearly 14 banks on a loan worth Rs 842.15 crore.
Citing RBI data, the minister said the gross NPAs of public sector banks on December 31, 2017 were Rs 7.77 lakh crore.
Chidambaram said that instead of dealing with a business problem and finding a business solutions, a political twist, a legal twist was given to it. The result was that today the power and telecom sectors are 'in a shambles," he said.
As a result, these banks may not sanction further loan to STC
The industry body however said that the exercise needs to be carried out cautiously and the government must ensure that investigations do not cripple lending and dampen business sentiment.
Banks classify loans that have remained unpaid for 61-90 days as special mentioned account 2 (SMA-2) that has the high risk of slipping into NPA.
The revised framework has specified norms for "early identification" of stressed assets, timelines for implementation of resolution plans, and a penalty on banks for failing to adhere to the prescribed timelines.
The RBI abolished half a dozen existing loan-restructuring mechanisms late last night, and instead provided for a strict 180-day timeline for banks to agree on a resolution plan in case of a default or else refer the account for bankruptcy.
Starting Feb 23, banks are required to identify defaults and make disclosures every Friday to the RBI credit registry.
The week gone by was more about the RBI monetary policy despite a bland status quo and the financial results of big banks such as State Bank of India (SBI) and Bank of Baroda (BoB).