Loan Default

Personal-loan growth is moderating as the central bank last year clamped down on risky lending practices following a post-pandemic surge in credit

Vijay Mallya was declared a fugitive under the Fugitive Economic Offenders Act in 2019. The recent non-bailable warrant has been issued for a Rs 180 crore loan default

One of the initial challenges of the process was whether a banker's agreement with the company and the personal guarantor is interlinked or separate

Economic growth has slowed in developing countries, with growth falling to barely 4% from 6% in two decades, Banga said

The exercise involved calculating the total amount to be repaid after a year if one is given the loan amount and the interest applicable

Are the borrowers getting into a debt trap, without understanding the risks? Digital lending is still a grey area

Coffee Day Enterprises Ltd has reported a total default of Rs 433.91 crore on payments of interest and repayment of principal amount on loans from banks, financial institutions, and unlisted debt securities for the December quarter. Coffee Day Enterprises Ltd (CDEL), which is paring its debts through asset resolution, in a regulatory update said "the delay in debt servicing is due to liquidity crisis". CDEL reported a default of Rs 183.36 crore on the payment of the principal amount on loans or revolving facilities like cash credit from banks or financial institutions as on December 31, 2023. Besides, it has also defaulted on the repayment of interest of Rs 5.78 crore on the above. For unlisted debt securities such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), the default amount was Rs 200 crore as on December 31, along with a default in payment of interest of Rs 44.77 crore. "Due to default in repayment of interest and principal...

As China's economy struggles to recover and unemployment remains high, the indebted population is growing, the report added

Lenders have been pushing hard for the repayment of the $1.2 billion loan amid the company's mounting distress after a pandemic-era boom in online learning fizzled out

The nation's largest lender State Bank of India is adopting a novel way to ensure timely repayments, especially by its retail borrowers, by greeting those likely to default on monthly installments with a pack of chocolates. According to the bank, it has been found that a borrower who is planning to default will not answer a reminder call from the bank. So the best way is to meet them at their homes unannounced. The move, aimed at ensuring better collections, comes amidst rising level of retail lending in the system coupled with increasing delinquency levels on the back of the upward movement in the interest rates. SBI's retail loan book grew over 16.46 per cent to Rs 12,04,279 crore in the June 2023 quarter from Rs 10,34,111 crore in the year-ago period, making it the largest asset class for the lender whose total book stood at Rs 33,03,731 crore, growing at 13.9 per cent on-year. In fact for the entire system, the double-digit loan growth of around 16 per cent has been led by reta

Also explore options such as swapping higher-cost debt with lower-cost alternatives, and debt consolidation

Crisis-hit Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans worth Rs 3,961 crore, including principal and interest amount. In a regulatory filing, Jaiprakash Associates Ltd (JAL) informed that the company on May 31 defaulted on repayments of a principal amount of Rs 1,600 crore and interest of Rs 2,361 crore. The loans pertained to various banks, and the nature of the obligation is fund-based working capital, non-fund-based working capital, term loans and FCCB (foreign currency convertible bonds). "The total borrowing (including interest) of the company is Rs 29,429 crore, repayable by 2037, against which only Rs 3,961 crore is overdue as on May 31, 2023," JAL said. Out of the total borrowing of Rs 29,429 crore, the company said that Rs 18,231 crore will get further reduced on transfer to the proposed Special Purpose Vehicle (SPV) for which the scheme of arrangement duly approved by all the stakeholders, is pending sanction of National Company Law Tribunal

The investment bank estimates office and retail property valuations could fall as much as 40% from peak to trough, increasing the risk of defaults

Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans of Rs 4,059 crore, comprising both the principal and interest amount. In a regulatory filing, Jaiprakash Associates Ltd (JAL) said the company on December 31 defaulted on repayments of principal amount Rs 1,713 crore and interest of Rs 2,346 crore. The loans pertained to various banks and the nature of obligation is fund based working capital, non fund based working capital, term loans and FCCB (foreign currency convertible bonds). In September 2018, ICICI Bank filed an insolvency petition against JAL but the matter is still pending before the Allahabad bench of the National Company Law Tribunal (NCLT). The country's biggest lender SBI had in September this year moved the NCLT against JAL, claiming a total default of Rs 6,893.15 crore as on September 15, 2022. Last month, JAL and its group firms announced the sale of its remaining cement assets to Dalmia Bharat Ltd at an enterprise value of Rs 5,666 crore an

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SBI will auction the account of Maharashtra-based Pioneer Gas and Power next month to recover loan dues of over Rs 180 crore from the company.

A report by Institutional Investor Advisory Services (IiAS) last month says that the company has defaulted on loans to the tune of Rs 3,561 crore as on March 31, 2022

Industry grouse - 22 products have been banned although they are fully recyclable, while non-recyclable packaging used by FMCG firms have been let off

Action follows upgrade in outlook on India's Sovereign rating

In extreme situations, file injunction suit against the latter to prevent it from taking coercive steps