Public sector banks recover Rs 1.2 lakh Cr from bad loans in 2018-19
PrintListen to this Article
During the first half of the previous fiscal, banks recovered Rs 60,713 crore from bad loans.
"Due to non-resolution of some big accounts referred under NCLT (National Company Law Tribunal), PSBs could not achieve the resolution target of Rs 1.80 lakh crore. But, these accounts should be resolved in the current financial year," the official said.
Banks recovered close to Rs 55,000 crore from the NCLT resolution, the official said.
"Compared to Rs 74,562 crore in 2017-18, the recovery in the previous financial year nearly doubled to Rs 1.2 lakh crore," the official said.
Two large accounts of Essar Steel and Bhushan Power & Steel Ltd are still pending to be resolved.
It is expected that these two accounts should be resolved in the next few months and recoveries from these could be around Rs 50,000 crore.
JSW Steel had revised its offer from Rs 11,000 crore to Rs 18,000 crore and later to over Rs 19,000 crore, whereas Tata Steel's last offer was at Rs 17,000 crore after it had refused to revise its bid. ArcelorMittal has made a bid of Rs 42,000 crore for Essar Steel.
According to the official, consolidation among public sector banks and higher recoveries by state-owned lenders will be on the government's agenda in the current financial year.
Referring to the liquidity crisis in the non-banking financial companies (NBFCs), the official said that there are issues with both solvency and liquidity in these companies.
"The government and the Reserve Bank of India will take adequate measures to address the issues plaguing the NBFC sector," the official said.
Many NBFCs, including DHFL and Indiabulls Finance, came under severe liquidity pressure compelling them to bring down their reliance on commercial papers.
Ever since the IL&FS crisis erupted, banks have been averse to lending to the sector, which has put them in a tight spot. There are concerns that NBFCs may run out of money, which will lead to defaults. #casansaar (Source - PTI)
Category : NPA | Comments : 0 | Hits : 447
Indian banks have written off loans worth Rs 1.53 lakh crore in 2020-21 to show reduced non-performing assets (NPAs) on their books, calculations based on numbers released by individual banks showed. This is the second-highest amount of loans being written off in a financial year over the last decade after 2018-19's record Rs 2.54 lakh crore write-offs. For one, loans that have been bad for years are dropped from the balance sheet of banks by way of a write-off and corporates compri...
The Supreme Court on Tuesday said the interim relief granted earlier to not declare the accounts of respective borrowers as non-performing assets stands vacated, ending the blanket ban on classification of non-performing assets (NPAs). “However, there shall be no order as to costs,” the order by the top court said. In September last year, the Supreme Court had directed that accounts not declared NPAs as of August 31 should not be classified as such until further orders. This ha...
The Supreme Court Thursday directed that accounts, which were not declared as non-performing asset till August 31 this year, shall not be declared NPA till further orders. A bench headed by Justice Ashok Bhushan said this while hearing a batch of pleas which have raised the issue of interest being charged on instalments which were deferred under moratorium period due to COVID-19 pandemic. The apex court passed the order while noting the submissions of senior lawyer Harish Salve, who appear...
The Finance Ministry has asked the Reserve Bank of India (RBI) to relax asset classification norms for farm loans extended by banks following the stress faced by the agriculture sector. In a letter addressed to RBI Governor Shaktikanta Das, the Ministry said, “it is requested to consider making appropriate relaxation in asset classification norms in respect of short-term agricultural crop loans for a period up to 30th June 2020.” The letter, reviewed by The Hindu, cited a commu...
The National Company Law Appellate Tribunal (NCLAT) on May 2 allowed the banks to declare as non-performing assets the accounts of IL&FS and its group companies that have defaulted on payments. A bench headed by Chairman Justice S J Mukhopadhaya lifted the embargo on the banks to declare the accounts of the debt-ridden IL&FS and its 300 group entities, which are unable to pay their debt. However, the appellate tribunal has also clarified that although the banks would declare the IL...
Comments