Stressed Assets

NARCL has been set up with a strategic initiative to clean up the legacy stressed assets with an exposure of Rs 500 crore and above in the Indian Banking system

Litigation tactics of corporate debtors and poor judicial infrastructure among reasons for delay

Securitisation refers to a process that includes the pooling of loans and then selling them to a Special Purpose Entity which then issues securities backed by the loan pool

Company added Rs 600 crore in assets in six months, as it makes recoveries from acquisitions earlier

IBBI had invited comments from the stakeholders to suggest if parts of stressed assets could be sold off instead of as a whole

Haircuts are defined as the losses incurred by the creditors (banks in this case) on resolving the bad debts or stressed assets

Sub-investment grade MSMEs are at high risk; sunset for pandemic-induced relief measures to have a bearing too

Proposals call for marketing strategy where total claims exceed Rs 100 cr; creditors can also propose steps to market stressed assets

However, stressed assets of NBFC-MFIs, which comprise of 30+ Portfolio at Risk (PAR) and loan book restructuring remains well above the pre-pandemic level of around 3 per cent

The issue gains importance as Sebi wants its circular on ISIN-level voting---issued in October 2020-to be applied to cases such as Reliance Capital and SREI

"It is observed that the said ratio for India compared adversely with those of US, UK and China, and information in respect of Japan is not available," the minister said

Overall, 38 accounts worth Rs 83,000 crore identified: SBI chairman

The tax rate for business income is 42.7 per cent after surcharge and cess

All lenders including banks must make a list of non-performing assets which they intend to sell to eligible entities including ARCs at the start of each year: Report

For the retail credit, rise in stressed assets is pegged at 4-5 per cent in March 2022 from 3 per cent estimated in March 2021

The NARCL has been incorporated under the Companies Act, and public sector banks will hold 51 per cent in the bad bank

The insolvency law has provided a framework for resolution of stressed assets, and its success needs to be appreciated in comparison with the situation that prevailed prior to its implementation

Financial institutions are likely to exercise 'Restructuring 2' for stressed assets, in the absence of a moratorium, said HDFC Securities

RHF on Monday took note of a resolution plan approved by lenders under the Reserve Bank of India's (RBI's) prudential framework for resolution of stressed assets

The government had, in May last year, announced a slew of measures to help MSMEs tide through the Covid-19 crisis.