Debt Recovery

SC issues notice to Centre over vacancies in 11 debt recovery Tribunals

The Supreme Court on Monday sought a response from the Ministry of Finance on a PIL highlighting critical vacancies in 11 Debt Recovery Tribunals (DRTs) across India. The DRTs are set up under the Recovery of Dues to Banks and Financial Institutions Act of 1993 to enable banks and financial institutions recover bad debts from borrowers. "Eleven DRTs remain unmanned which is creating issues. In view of the grant of additional charges and also the complications, notice be served including 'dasti', counter affidavits (reply) be filed in five weeks and the rejoinder to be filed within three weeks after the response," said a bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar. The PIL, filed by Ghaziabad resident Nischay Chaudhary, was argued by senior advocate K B Sounder Rajan along with lawyer Sudarshan Rajan. According to the PIL, as of September 30, 2024, 11 DRTs are without presiding officers, severely impacting their ability to resolve cases efficiently. The PI

HDFC Bank to sell Rs 10k cr in loan portfolios via pass-through certificate

HDFC Bank will use a rare debt instrument known as pass-through certificates to sell loan portfolios worth up to Rs 10,000 crore ($1.2 billion)

Sri Lanka to save $5 billion after bilateral debt rework: Wickremesinghe

The cash-strapped South Asian country inked deals with China and other creditor nations to restructure about $10 billion

Power Finance Corp approves Rs 15,000 cr loan to Shapoorji Pallonji group

This loan will assist the Mistry family in repaying personal debts, amounting to about $3 billion, and fulfilling commitments made to their creditors

High property prices to boost debt recovery from realty projects: Report

Recovery of debt from stressed residential realty projects is set to increase in the current financial year due to higher property prices as well as changes in rules, a report said on Monday. The bad loan recovery rate is estimated to touch 16-18 per cent at the end of FY25 from 11 per cent as on March 31, 2024, domestic rating agency Crisil said in a report. "This will be driven by improved viability of stressed projects due to healthy demand and price appreciation seen in residential real estate and greater investor and promoter interest in reviving such projects," the agency said. It added that recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations for real estate projects should also strengthen resolution of stressed real estate assets in the medium term. The agency said it analysed the performance of its portfolio comprising security receipts of Rs 9,000 crore from 70 stressed realty projects with a saleable area of 66 million square feet while ..

Credgenics launches debt recovery platform for asset reconstruction firms

Service will help debt recovery by providing information about each stage of delinquent cases

15 years since US bank Lehman Brothers fall: Looking back to look ahead

15 years ago, a US investment bank collapsed and changed the financial world forever. Or, did it?

The Paris Club: Here is all you need to know about the group of creditors

Which countries are members of the Paris Club? How does it work? Read more to find out

Bankruptcy cases rise 25% in Q3; recovery lowest at 23.45%: Care Ratings

The number of insolvency cases increased 25 per cent in the December 2022 quarter, while recovery of debt through the process remained the lowest at 23.45 per cent during the period, an analysis showed. While the number of insolvency petitions increased by a steep 25 per cent, the overall recovery rate till the third quarter of FY23 was just 30.4 per cent, implying a haircut of 69.6 per cent. The cumulative recovery rate has been on a downtrend, decreasing from 43 per cent in Q1FY20 and 32.9 per cent in Q4FY22, according to an analysis of the latest numbers of insolvency board IBBI carried out by Care Ratings. However, the Q3FY23 recovery was the lowest at 23.45 per cent, it said. Sanjay Agarwal, a senior director with the agency, said this steep fall has been due to the fact that most of the larger resolutions have already been executed and a significant number of liquidated cases are either BIFR (Board for Industrial and Financial Reconstruction) cases and/or defunct with high ...

Realisation through IBC 201% of liquidation value as of Sept: RBI

SARFAESI and Debt Recovery Tribunals have yielded recovery rates comparable to the IBC mechanism, says Trend and Progress Report

IL&FS resolves Rs 56,943 cr debt as of Sept, addresses 93% of target

Infra lending firm's affidavit says it has reduced the number of entities under it from 302 to 101

Independent valuations 70% more than bankrupt Reliance Capital bids

In November last year, the Reserve Bank of India had sent the company to debt resolution after it defaulted on its loans worth Rs 24,000 crore

Cumulative recovery rate under insolvency resolution falls to 30.18% in Q3

The cumulative recovery rate under the insolvency resolution processes of debt-ridden companies declined to 30.18 per cent at the end of the September quarter, indicating that lenders took more haircut on their exposure, shows a study. The recovery rate has fallen steeply from a peak of 43 per cent in Q1 FY20. Of the Rs 7,90,626.2 crore claims from the financial creditors admitted by various benches of the National Company Law Tribunal (NCLT), only Rs 2,43,452.5 crore or 30.18 per cent have been recovered till the end of Q2 FY23, as per an analysis of IBBI data done by Care Ratings. The overall recovery rate implies a haircut of around 70 per cent for the lenders. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC), which provides for market-linked and time-bound resolution of stressed assets. The cumulative recovery rate has been on a downtrend, falling from 43 per cent in Q1 FY20 and 32.9 per cent in Q

G20: Leaders see deteriorating debt woes in middle-income nations

The leaders said they would step up efforts to implement the Common Framework for debt treatments in a "predictable, timely, orderly and coordinated manner"

Strong retail interest sees DCX Systems IPO subscribed 2.19 times on day-1

Price band set at Rs 197-207 a share; retail portion sold 8.7x

NHRC issues notice to Raj govt over 'auctioning of girls' to recover debt

The NHRC on Thursday issued a notice to Rajasthan government over reports that girls are being auctioned on stamp paper in half a dozen districts of the state and the refusal thereof is resulting in the "rape of their mothers to settle financial disputes on the diktats of caste panchayats". The National Human Rights Commission (NHRC) has taken suo motu cognizance of a media report, it said in a statement. The chief secretary of Rajasthan and the state's director general of police (DGP) have been asked to respond to the commission within four weeks. Citing a media report, the NHRC said that whenever there is a dispute between the two parties particularly involving financial transactions and loans, girls aged between eight years and 18 years are auctioned to recover money. A media report said that after being auctioned, these girls are sent to UP, MP, Mumbai, Delhi and even foreign countries and subjected to physical abuse, torture and sexual assault in slavery. If true, the contents

Poor nations face peril over elusive G-20 debt relief push: An analysis

Two years ago the Group of 20 launched the Common Framework - a mechanism designed to provide a swift and comprehensive debt overhaul to nations buckling under debt burdens after Covid-19 shock

BS Number Wise: Asset reconstruction companies need to rebuild

They have been losing business as the IBC process picks up pace

NCLT extends Reliance Capital resolution process deadline to Jan 31

The National Company Law Tribunal (NCLT) has for the third time extended the deadline for debt-ridden Reliance Capital's resolution process to January 31. The earlier deadline was November 1, 2022. This is the third extension as the timeline has been extended twice in the past, sources said. As per the Insolvency and Bankruptcy Code (IBC) rules, the administrator had to originally close the resolution of RCL within 180 days, by June 3, 2022. Earlier, the lenders of Reliance Capital had given an extension of 30 days to the bidders for submission of binding bids, along with an EMD of Rs 75 crore, by October 31. The bidders were not happy with this 30 days extension as most of them had sought an extension by 2-4 months. Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries. Two options are available for the bidders. The fir

Suzlon Energy looks to pare debt by Rs 583.5 crore after rights issue

Targets repaying remaining debt in eight years; Rs 1,200 crore opened on Tuesday