Page 17 - Bad Loans

High-debt companies rally after RBI lifeline

Shares of indebted companies gained as the new scheme proposed by the RBI will ease debt repayment period and ease the capital structure, said analysts

Govt to support banks to commercially deal with bad loans: Arun Jaitley

He added Indian Banks' Association would meet on Monday to discuss a mechanism to handle such settlements

Banks Board Bureau chief says it's time for mergers

He said India's state-owned banks need to merge into half a dozen well-capitalised institutions that can underwrite economic growth

Finance Ministry to soon set up panel on bad loans

To look into various issues related to NPAs and ways to rein them

Union Bank of India Q4 net profit plunges 78% as bad loans rise

Gross bad loans as a percentage of total loans increased to 8.70% in March quarter from 7.05% in December quarter

India's bad loans could be more than New Zealand's $170 bn economy

Banks' loan growth at 10.7% in last fiscal year ended March 31, was slowest in nearly two decades

Letters: Nip NPAs in the bud

The article, "Just how bad are the bad loans" (May 10), by Nitin Sethi and Ishan Bakshi was interesting. Data analysis of bad loans is done after loans are disbursed; their causes are not analysed before.The main cause is lack of supervision at the operational level. Often, large loan amounts, for example, Rs 100 crore or above, are sanctioned at the head office or regional office of banks and sometimes under political pressure. Rarely is the branch head involved in the sanctioning process, hence monitoring of the loan post disbursement is neglected. The Reserve Bank of India (RBI) comes into the picture only after loans have turned bad in terms of their classification as SMA-0 to loss assets.Unless the RBI makes drastic changes in the sanctioning and monitoring process, the non-performing assets of banks will increase. One must remember: a stitch in time saves nine.S A Bhave PuneLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafa

Just how bad are the bad loans?

Only a fraction of defaulting loans is reported to central databases; what is made available for public scrutiny would be even less

Reduce NPAs or be ready to lose out on capital infusion: Govt to banks

Finance ministry asks bank to improve recoveries, which is set to hold significant weightage in capital allocation, The Economic Times reports

701 bad loan accounts owe PSU banks Rs 1.63 lakh crore

Among PSBs, SBI and IDBI Bank have two such accounts with loan outstanding of Rs 7,510 crore and Rs 2,802 crore

Uniform definition for bad loans on the cards

The BIS proposal assumes significance amid efforts from Indian banks and other authorities to recover loans from wilful defaulters

Don't want to overstate bad loan crisis: Arun Jaitley

'We don't want to create a situation where the whole activity of lending for growth itself starts suffering because people become extraordinarily defensive, Jaitley said

Not happy with management of bad loans by RBI, banks: Parliamentary Panel

Companies, which have undergone restructuring process for their stressed loans, should be made public, there cannot be any justification for maintaining secrecy on this count, the report said

PNB declares 900 firms as wilful defaulters; owe Rs 11,000 cr

As part of its balance sheet clean-up exercise, PNB plans to sell up to Rs 3,000-crore worth of bad loans