Banks violated SC guidelines on loan defaults
8 years, 11 months ago

Banks violated SC guidelines on loan defaults

The Hindu  

Despite a nationwide uproar over the gigantic size of non-performing assets and many loan defaults, the public sector banks have violated the Supreme Court guidelines to give prosecution sanction within four months to proceed against officers accused of criminal conspiracy to cheat them. In the case of Indian Overseas Bank, there were seven cases pending, while State Bank of India was sitting on two cases. According to sources, almost 100 cases are pending with various public sector banks for prosecution sanction. Under Section 19 of the Prevention of Corruption Act, courts cannot take cognisance of a charge sheet until the prosecuting authority, in this case the CBI, has the sanction of the “appropriate administrative authority.” The Supreme Court has laid down guidelines setting a time limit of three months for grant of sanction for prosecution, once the investigation agency submits its FIR, findings and other relevant documents to the sanctioning authority.

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Karnataka: DCs instructed to file criminal cases against microfinance firms if they adopt dubious methods to recover loans
1 month, 3 weeks ago

Karnataka: DCs instructed to file criminal cases against microfinance firms if they adopt dubious methods to recover loans

The Hindu  

With reports from across districts of microfinance company representatives adopting dubious means to recover loans from poor defaulters, Revenue Minister Krishna Byre Gowda instructed Deputy Commissioners of districts to file criminal cases against companies if they violate RBI norms in the process of loan recovery. At a meeting of the Deputy Commissioners held in Bengaluru, Mr. Byre Gowda directed Deputy …

RBI Report: Bank frauds increased eight-fold in first half of current fiscal
2 months, 3 weeks ago

RBI Report: Bank frauds increased eight-fold in first half of current fiscal

Deccan Chronicle  

New Delhi: Facing multiple challenges for the financial system in the country, the Reserve bank of India on Thursday said that the number of bank frauds witnessed a significant rise of eight-fold to Rs 21,367 crore in over 18,000 cases in the first half of the current fiscal. “The number of frauds during April-September stood at 18,461 involving Rs 21,367 …

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports
3 months, 2 weeks ago

India: Gross NPAs of PSBs at ₹3.16L Cr, Govt Reports

Deccan Chronicle  

New Delhi: The gross non-performing assets of public sector banks stood at Rs 3.16 lakh crore as of September 30, which is 3.09 per cent of the outstanding loans, while gross NPAs as percentage of outstanding loan is 1.86 per cent in private sector banks, the government said on Tuesday. Informing to the Parliament, minister of state for finance Pankaj …

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe
2 years, 5 months ago

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe

Live Law  

A Division Bench of the Supreme Court of India on Monday issued notice on a writ petition filed by Dr Subramanian Swamy seeking an enquiry by the Central Bureau of Investigation into the role of Reserve Bank of India officials in various banking scams. Gavai and B.V. Nagarathna that the RBI officials had allegedly escaped scrutiny with respect to their …

One-time settlement for bank loans not to mean escape from criminal liability: HC
4 years, 3 months ago

One-time settlement for bank loans not to mean escape from criminal liability: HC

Deccan Chronicle  

HYDERABAD: A one-time settlement of loans taken from banks by itself is not legally sufficient to wipe out the criminal liability of the borrowers, particularly those who fraudulently took loans and opted to settle those with meagre amounts. Their firm, Kyori Oremin, availed credit facilities from Central Bank of India, SBI, Bank of Baroda, Bank of Maharashtra and ICICI Bank, …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 4 months ago

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P

News 18  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is ”masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the …

SC defers case seeking clarification on eligibility of NBFC for loan moratorium
4 years, 9 months ago

SC defers case seeking clarification on eligibility of NBFC for loan moratorium

Live Mint  

The Supreme Court on Tuesday deferred hearing the plea seeking clarification on the eligibility of the Non Banking Financial Company for loan moratorium scheme announced by RBI in March which granted three-month loan moratorium from paying EMIs and other loans amidst the nationwide lockdown due to covid-19. The central bank had on 22 May extended moratorium on term loans till …

PSU banks back in UK court over Mallya’s non-payment of debt
5 years, 3 months ago

PSU banks back in UK court over Mallya’s non-payment of debt

The Hindu  

A consortium of public sector banks led by State Bank of India are back in the UK high court to seek a bankruptcy order against liquor tycoon Vijay Mallya over the alleged unpaid debt of around £1.145 billion. Judge Michael Briggs is presiding over a hearing in the insolvency division of the court in London this week in relation to …

From bad loans to excess liquidity, why situation post NPA and fraud episodes is not a happy one for banks
7 years ago

From bad loans to excess liquidity, why situation post NPA and fraud episodes is not a happy one for banks

Firstpost  

Banks Board Bureau that was set up for appointments has not exactly been even a moderate success and hence the issue of management at banks remains open. The issuance of recap bonds, though not the ideal way, is still looking inadequate with the new cases of fraud being revealed which will impinge profits and hence finally the net worth of …

Rot in PSBs Part 2: PNB, Nirav Modi, Vikram Kothari aren’t the first; India’s PSBs have long been beaten by frauds
7 years, 1 month ago

Rot in PSBs Part 2: PNB, Nirav Modi, Vikram Kothari aren’t the first; India’s PSBs have long been beaten by frauds

Firstpost  

The Rs 11,400-crore bank fraud in PNB, that was perpetrated by billionaire Nirav Modi in collusion with a few bank employees, has once again brought governance practices in Public Sector Banks back to public debate Editor’s note: The Rs 11,400-crore bank fraud in Punjab National Bank, that was perpetrated by billionaire Nirav Modi in collusion with a few bank employees, …

Punjab National Bank scam: RBI data revealed through RTI shows India's fraud problems extend far beyond PNB
7 years, 1 month ago

Punjab National Bank scam: RBI data revealed through RTI shows India's fraud problems extend far beyond PNB

Firstpost  

Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by billionaire jeweller Nirav Modi, but the central bank has recorded data that shows the problem runs far deeper and wider New Delhi/Mumbai: Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by billionaire jeweller Nirav Modi, …

PSU banks cement grip on corporate defaults in $207 billion bad loan fight
7 years, 4 months ago

PSU banks cement grip on corporate defaults in $207 billion bad loan fight

Live Mint  

Mumbai: Roiled by India’s high-profile corporate defaults, the nation’s lenders are tightening the screws on borrowers with stricter debt covenants and greater enforcement as the battle to curb delinquent loans intensifies. Banks are asking for collateral that may amount to one-and-a-half times the value of the debt on new loans extended and are insisting on contracts that allow loans to …

NPA battle: RBI likely to start insolvency proceedings vs Rs 8 lakh cr bad loans by March 2019
7 years, 8 months ago

NPA battle: RBI likely to start insolvency proceedings vs Rs 8 lakh cr bad loans by March 2019

Firstpost  

It is no secret that NPAs are a big drain on the financial health of banks especially public sector banks. 8 lakh crore by March 2019, a move that could bring down the NPAs and improve the financial health of banks, a study by Assocham said. “So, it should be safe to assume that the non-performing assets mess would largely …

The case for mediated settlements
7 years, 11 months ago

The case for mediated settlements

The Hindu  

The country’s banking sector is severely stressed with one-sixth of the gross advances of public sector banks being non-performing assets. In joint and separate sittings with the mediators, this consensual, non-coercive and confidential process enables the parties to discuss options such as debt concessions, repayment schedules, interest reductions, perhaps even additional credit with safeguards. In face-to-face meetings between only creditor …

156 PSB officials suspended for involvement in post-notes ban irregularities
8 years, 1 month ago

156 PSB officials suspended for involvement in post-notes ban irregularities

India TV News  

As many as 156 senior officials of various state-owned banks have been suspended and 41 transferred after they were found involved in irregularities related to demonetisation, Parliament was informed today. On the basis ofprima facie involvement in the irregularities, Public Sector Banks are so far reported to have placed 156 officials under suspension and to have transferred 41 officials," Finance …

Supreme Court asks government to set up a panel to probe bad loans
8 years, 10 months ago

Supreme Court asks government to set up a panel to probe bad loans

Firstpost  

The Supreme Court on Tuesday asked the Union Finance Ministry to inform about the mechanism in place for recovery of huge Non-Performing Assets The Supreme Court on Tuesday directed the Finance ministry to form a panel to look into the bad loan issue. The government, in its response, told the apex court that it is already working to contain the …

Supreme Court seeks list of companies who have defaulted over Rs. 500 crore
9 years, 1 month ago

Supreme Court seeks list of companies who have defaulted over Rs. 500 crore

The Hindu  

The Supreme Court on Tuesday asked the Reserve Bank of India to provide a list of companies which have defaulted on bank loans worth over Rs. Thakur asked the top bank to provide in six weeks the list of companies whose loans have been restructured under corporate debt restructuring schemes. Directing that the list be placed on record in a …

PMO to review steps to check loan frauds on Thursday |IndiaTV News
9 years, 10 months ago

PMO to review steps to check loan frauds on Thursday |IndiaTV News

India TV News  

NEW DELHI: Amid a rising number of frauds and loan defaults in banking system, the Prime Minister's Office has called a meeting of Finance Ministry officials on Thursday to firm up measures to tackle such menaces. The Prime Minister's Office in a meeting with top finance ministry officials on May 14 will review steps to check loan frauds, an official …

Syndicate Bank scam: Criminality a major reason for current bad debt pile of lenders
10 years, 7 months ago

Syndicate Bank scam: Criminality a major reason for current bad debt pile of lenders

Firstpost  

The element of criminality in a banking transaction ultimately hits the banks, which are guardians of tax payers’ money A slowing economy and clearance delays for projects are the two commonly cited reasons for the spike in bad loans in the banking system, over the past few years in particular. In the post monetary policy presser on 5 August, Reserve …

FinMin directs banks to deal firmly with fraud, wilful default
10 years, 10 months ago

FinMin directs banks to deal firmly with fraud, wilful default

India TV News  

New Delhi: As part of the strategy to contain bad debts, the Finance Ministry has directed all public sector banks to accord top priority to cases of fraud and wilful default and take legal action against those responsible. There is no difference in fraud and wilful default as both are intentional in nature,” Financial Services Secretary Gurdial Singh Sandhu told …

Ex-CMD of Indian Bank, 14 others get 1-yr jail
11 years, 6 months ago

Ex-CMD of Indian Bank, 14 others get 1-yr jail

India TV News  

Chennai: Former Indian Bank Chairman and Managing Director M Gopalakrishnan and six other former top bank officials were yesterday sentenced to one year rigorous imprisonment by a CBI court here for allegedly causing a loss of Rs 31.75 crore by granting loans without proper security between 1992-96. Principal Judge for CBI cases S Malathy held them guilty of conspiracy, criminal …

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