RBI sets new stressed assets norms
5 years, 9 months ago

RBI sets new stressed assets norms

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Friday issued a new framework for resolution of stressed assets, putting less stringent requirement on banks for classifying defaults as bad loans while at the same time continuing to incentivise them for accelerated resolution of stressed assets. The new norms require lenders to resolve non-performing assets over Rs 2,000 crore within 180 days while the old controversial circular issued on February 12, 2018 required banks to initiate resolution or restructuring of loans worth Rs 2,000 crore or more even if there was a one-day default. For instance, the circular’s incentive to reverse 50 per cent of the provisions upon reference under IBC will prompt lenders to refer such stressed cases to IBC for faster resolution. The central bank said lenders shall recognise incipient stress in loan accounts, immediately on default, by classifying such assets as special mention accounts. The new norms replace all the earlier resolution plans such as the framework for revitalising distressed assets, corporate debt restructuring scheme, flexible structuring of existing long-term project loans, strategic debt restructuring scheme, change in ownership outside SDR, and scheme for sustainable structuring of stressed assets, and the joint lenders' forum with immediate effect.

Resolution Assets Cent Rbi Lenders Default Ica Ibc Stressed Stressed Assets Sets Norms  stressed  rbi  framework  default  resolution  cent  assets  shall  ibc  restructuring  sets  norms  lenders

History of this topic

SBI-led committee to be set up to formulate new list of large stressed accounts with banks for resolution under IBC
3 months, 1 week ago

SBI-led committee to be set up to formulate new list of large stressed accounts with banks for resolution under IBC

Live Mint  

The government has decided to set up a committee under the State Bank of India chairman to examine and submit a fresh list of stressed accounts with banks for transfer to NCLT and bolster the resolution pipeline This would be in addition to the top 20 accounts identified by banks earlier for admission at the NCLT. During the meeting, Nagaraju …

Wilful default: RBI to tweak rules to give lenders flexibility in handling cases
1 year, 3 months ago

Wilful default: RBI to tweak rules to give lenders flexibility in handling cases

Live Mint  

New Delhi: Lenders may get more flexibility in dealing with potential wilful defaulters as the central bank may make in-person hearings with borrowers mandatory at the time of identifying a loan account as stressed, two persons aware of the development said. A Supreme Court order in March regarding RBI’s 2016 circular on wilful defaults had said that borrowers should get …

RBI permits banks to undertake compromise settlement of wilful defaults, fraud accounts
1 year, 9 months ago

RBI permits banks to undertake compromise settlement of wilful defaults, fraud accounts

The Hindu  

In order to ensure maximum recovery from distressed assets, the Reserve Bank of India has allowed banks to go for compromise settlement of fraud accounts and wilful defaults. REs may undertake compromise settlements or technical write-offs in respect of accounts categorised as wilful defaulters or fraud without prejudice to the criminal proceeding underway against such debtors. “In respect of compromise …

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told
4 years, 3 months ago

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told

Live Law  

Senior Advocate Ravindra Srivastava, for the group, told the bench of Justices Ashok Bhushan, R. Subhash Reddy and M. R. Shah that the banks are "prevailing over" the government and the RBI and "making huge profits". Mr. Srivastava argued that while the Kamath committee had mentioned 26 sectors as having been severely-impacted during the Covid pandemic, the waiver of compound …

Debt resolution framework: A balance of relief and rigour
4 years, 6 months ago

Debt resolution framework: A balance of relief and rigour

Live Mint  

The Reserve Bank of India struck a balance between relief and rigour in its resolution framework for covid-related stress issued on 6 August 2020, giving businesses affected by the exogenous shock of covid a necessary reprieve by permitting restructuring without requiring change of control, while also creating strict boundary conditions for such restructuring. The central bank has prescribed five parameters …

RBI loan restructuring plan | A difficult choice for borrowers
4 years, 6 months ago

RBI loan restructuring plan | A difficult choice for borrowers

The Hindu  

The moratorium offered by banks and other institutional lenders ended last month. In this scenario, the Reserve Bank of India has announced a loan restructuring plan to offer relief to impacted borrowers, who may struggle to repay their debt over the short term, at least. Also, unlike the moratorium on term loans that was open for all, only those borrowers …

RBI introduces debt recast window with riders
4 years, 7 months ago

RBI introduces debt recast window with riders

Live Mint  

MUMBAI: The Reserve Bank of India on Thursday provided lenders a window to recast stressed assets without classifying them as non-performing on the condition that they set aside 10% additional provisions on such loans. The central bank also allowed a similar debt recast facility for personal loans and small businesses. For corporate loans, borrower accounts classified as standard but not …

One-time restructuring of loans biggest takeaway of RBI monetary policy
4 years, 7 months ago

One-time restructuring of loans biggest takeaway of RBI monetary policy

New Indian Express  

"It has been decided to provide a window under the June 7th Prudential Framework to enable lenders to implement a resolution plan in respect of eligible corporate exposures - without change in ownership - as well as personal loans, while classifying such exposures as standard assets, subject to specified conditions," Governor Das said in his statement. The RBI governor added …

RBI forms advisory committee to assist DHFL in bankruptcy proceedings
5 years, 4 months ago

RBI forms advisory committee to assist DHFL in bankruptcy proceedings

The Hindu  

The Reserve Bank of India has formed a three-member advisory committee to assist the administrator of troubled mortgage lender DHFL. Venkatesh, Chief Executive, Association of Mutual Funds in India, are part of the advisory committee Earlier the RBI had superceded the Board of the home financier and appointed former MD&CEO of Indian Overseas Bank, R Subramaniakumar, as the Administrator. “The …

Resolving stressed assets on time in your interest: RBI deputy governor NS Vishwanathan to banks
5 years, 7 months ago

Resolving stressed assets on time in your interest: RBI deputy governor NS Vishwanathan to banks

Firstpost  

Reserve Bank deputy governor NS Vishwanathan Tuesday exhorted bankers to ensure timely resolution of stressed assets under the new framework to extract the best value and underlined the need for dealing only in “genuine” cases Mumbai: Reserve Bank deputy governor NS Vishwanathan Tuesday exhorted bankers to ensure timely resolution of stressed assets under the new framework to extract the best …

RBI's norms to give more headroom to lenders to resolve big ticket NPAs: Report
5 years, 9 months ago

RBI's norms to give more headroom to lenders to resolve big ticket NPAs: Report

India TV News  

Reserve Bank's new guidelines to deal with bad loans will provide lenders the headroom and flexibility for resolution of large ticket stressed asset cases under the Insolvency and Bankruptcy Code, according to a report. "A better time frame and transition offered in the revised framework on this would allow the lenders the headroom and flexibility for resolution in large ticket …

RBI's norms to give more headroom and flexibility to lenders to resolve big ticket NPAs: Report
5 years, 9 months ago

RBI's norms to give more headroom and flexibility to lenders to resolve big ticket NPAs: Report

Firstpost  

RBI came out with a revised prudential framework for resolution of stressed assets after its February 2018 circular in this regard was struck down by the Supreme Court. New Delhi: Reserve Bank’s new guidelines to deal with bad loans will provide lenders the headroom and flexibility for resolution of large ticket stressed asset cases under the Insolvency and Bankruptcy Code, …

RBI's new framework to expedite resolution of stressed assets: Sashakt committee on bad loans
5 years, 9 months ago

RBI's new framework to expedite resolution of stressed assets: Sashakt committee on bad loans

Firstpost  

The Reserve Bank on Friday had replaced a tough norm on NPA categorisation by lenders, as it was quashed by the Supreme Court in April New Delhi: The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said …

'RBI's new framework to expedite resolution of stressed assets'
5 years, 9 months ago

'RBI's new framework to expedite resolution of stressed assets'

India TV News  

The mandatory norm of inter-creditor agreement allows banks to decide resolution strategy outside the IBC and it will help lenders to accelerate process to resolve stressed assets, Sashakt committee on bad loans said Monday. "The requirement of entering into the Inter-Creditor Agreement is an endorsement by the RBI of the need for the lenders to have a framework for resolution …

RBI’s new prudential framework for stressed asset resolution credit positive: Moody’s
5 years, 9 months ago

RBI’s new prudential framework for stressed asset resolution credit positive: Moody’s

India TV News  

Moody’s Investors Service Monday said the Reserve Bank's new prudential framework for stressed asset resolution is ‘credit positive’, but flagged the slower-than-expected progress of resolution under Insolvency and Bankruptcy Code as a key hurdle. “The RBI’s revised framework for the resolution of stressed assets is credit positive, because it brings back the focus on the need for the timely resolution …

RBI revises prudential norms for NPAs, gives banks 30 days to review stressed loans
5 years, 9 months ago

RBI revises prudential norms for NPAs, gives banks 30 days to review stressed loans

ABP News  

New Delhi: The Reserve Bank of India on Friday issued new guidelines for dealing with non-performing assets after the Supreme Court quashed its February 12, 2018, circular, which had mandated the lenders to start resolution even in case of one-day default, leading to huge protests from various quarters, particularly defaulters from the power sector. Lenders shall recognise incipient stress in …

New NPA resolution norms soon
5 years, 9 months ago

New NPA resolution norms soon

Deccan Chronicle  

Mumbai: The RBI on Thursday said it will come out with a revised circular on resolution of stressed assets "within the next three-four days". On April 2, the Supreme Court had quashed the RBI’s stringent, February12, 2018 circular on resolution of stressed assets as ‘ultra vires’. The Feb. 12 circular had directed lenders to refer loan accounts of over Rs …

RBI's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules
5 years, 10 months ago

RBI's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules

Firstpost  

Against the backdrop of the Supreme Court quashing an RBI circular, issued on 12 February, 2018, a revised set of rules is under works and would be released soon, they said. New Delhi/Mumbai: The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets …

RBI’s revised guidelines for resolution of stressed assets likely before May 23
5 years, 10 months ago

RBI’s revised guidelines for resolution of stressed assets likely before May 23

Live Mint  

New Delhi: The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank of India and the guidelines are expected to be announced before May 23, sources said. Against the backdrop of the Supreme Court quashing an RBI circular, issued …

RBI’s revised debt resolution rules likely post-election
5 years, 11 months ago

RBI’s revised debt resolution rules likely post-election

Live Mint  

New Delhi: The RBI's revised stress assets resolution circular is likely to be out after the elections to clear the model code of conduct, and also the regulator may need time to have consultations with legal experts, industry and government before bringing the framework out, official sources said. As per the circular, banks were told to start the resolution process …

New NPA framework soon
5 years, 11 months ago

New NPA framework soon

Deccan Chronicle  

Mumbai: With the Supreme Court quashing the Reserve Bank of India’s February 12, 2018 circular on resolution of stressed assets as ultra vires, the central bank would be coming out with a revised circular on resolution of stressed assets. Das said that the Supreme Court order struck down the February 12 circular regarding resolution of stressed assets but the validity …

RBI to issue revised circular on bad loan resolution: Shaktikanta Das
5 years, 11 months ago

RBI to issue revised circular on bad loan resolution: Shaktikanta Das

Live Mint  

Mumbai: The Reserve Bank of India will issue a revised circular for resolution of stressed assets after its 12 February 2018 norms were struck down by the Supreme Court earlier this week, RBI governor Shaktikanta Das said on Thursday. The RBI will take steps in light of the court order, including issuance of a revised circular, for expeditious and effective …

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers
5 years, 11 months ago

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers

Firstpost  

According to former RBI deputy governor R Gandhi banks can now take defaulting companies on their own instead of being directed by the regulator. In the best interest of customers, banks will take a call on referring cases to National Company Law Tribunal on case by case basis, a top public sector bank official told PTI. Prior to the 12 …

RBI 12 February circular quashed gives power sector some breathing space
5 years, 11 months ago

RBI 12 February circular quashed gives power sector some breathing space

Live Mint  

Mumbai: The striking down of the Reserve Bank of India’s 12 February 2018 circular, which would have fast-forwarded defaulting companies to bankruptcy court, will now save stressed power assets from immediate liquidation, according to power sector executives. “This provides much-needed relief to power companies which had been taken to NCLT under the RBI circular, including assets of RattanIndia, GVK, IL&FS …

RBI Feb 12 circular quashed. All eyes now on monetary policy
5 years, 11 months ago

RBI Feb 12 circular quashed. All eyes now on monetary policy

Live Mint  

Mumbai/New Delhi: The Supreme Court on Tuesday quashed RBI's 12 February circular that had set strict norms for bad loan resolution, easing the concerns of some debt-laden companies and upending India’s fledgling bankruptcy process. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan within 180 days for stressed accounts …

Supreme Court quashes RBI’s February 12 circular on one-day default
5 years, 11 months ago

Supreme Court quashes RBI’s February 12 circular on one-day default

Deccan Chronicle  

Mumbai: The Supreme Court on Tuesday declared as unconstitutional the Reserve Bank of India’s February 12, 2018 circular on defaulting companies. The Supreme Court held that in the light of section 35AA of the Banking Regulation Act, the RBI could not have issued a generic circular mandating reference under the Insolvency and Bankruptcy Code. As a result, all cases in …

Banks can now refer defaulters to NCLT on case by case basis: Bankers
5 years, 11 months ago

Banks can now refer defaulters to NCLT on case by case basis: Bankers

Live Mint  

With the Supreme Court nixing February 12 circular, the banks will now have discretion in taking the defaulting companies to NCLT under Insolvency and Bankruptcy Code, said experts. In the best interest of customers, banks will take a call on referring cases to National Company Law Tribunal on case by case basis, a top public sector bank official told PTI. …

Supreme Court order on NPAs: Power firms body heaves a sigh of relief
5 years, 11 months ago

Supreme Court order on NPAs: Power firms body heaves a sigh of relief

Live Mint  

Welcoming the Supreme Court ruling quashing the RBI circular on resolution of stressed assets, the Association of Power Producers on Tuesday said it will give some breather and flexibility to restructure their debt. The apex court quashed the RBI circular of 12 February, 2018, that made it mandatory for banks to recognize even a one-day defaults by the borrowers and …

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings
5 years, 11 months ago

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings

Hindustan Times  

The Supreme Court order quashing a Reserve Bank of India circular on resolving bad debt will provide relief to power companies and lenders as well as flexibility to restructure debts but will slowdown bankruptcy proceedings, experts said Tuesday. The Supreme Court on Tuesday quashed RBI’s February 12 circular, which prescribed rules for recognising one-day defaults by large corporates and initiating …

RBI to decide on required action after SC order: Arun Jaitley
5 years, 11 months ago

RBI to decide on required action after SC order: Arun Jaitley

Live Mint  

Within hours of the Supreme Court voiding the RBI's timebound debt resolution circular of last February, a cautious government said on Tuesday that, on the nullifying of this directive, the central bank would have to decide on what is required to be done for recovery of banks' bad loans. "RBI will now decide with the present condition of the market …

Authorization From Central Govt Necessary For RBI To Direct Insolvency Process Against Stressed Assets : SC [Read Judgment]
5 years, 11 months ago

Authorization From Central Govt Necessary For RBI To Direct Insolvency Process Against Stressed Assets : SC [Read Judgment]

Live Law  

In the judgment of the Supreme Court which quashed the general circular of Reserve Bank of India issued on February 12, 2018 on insolvency process against stressed assets, much turned on whether the power to issue such circular flew from Section 35A or Section 35AA of the Banking Regulation Act.While Section 35A talks about general powers of RBI to issue …

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]
5 years, 11 months ago

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]

Live Law  

The Supreme Court today struck down the circular issued by the Reserve Bank of India on February 12, 2018 directing banks to initiate insolvency proceedings against companies having bad debts of Rs 2000 crores or above.The February 12 circular had directed banks to resolve debts over Rs 2000 crores within 180 days, failing which the corporate debtor would have to …

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal
5 years, 11 months ago

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal

Firstpost  

Last month, the RBI had maintained that there was no dilution in its stand with regard to 12 February circular on stressed assets recognition and resolution. In a major relief to stressed power, sugar and infrastructure firms, the Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February, 2018 circular on bankruptcy proceedings and declared it ultra vires_,_ …

Supreme Court quashes RBI’s 12 February circular on one-day default
5 years, 11 months ago

Supreme Court quashes RBI’s 12 February circular on one-day default

Live Mint  

Mumbai: The Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February circular which prescribed rules for recognising one-day defaults by large corporates and called for insolvency action as a remedy. Since the central bank had also cancelled all its previous restructuring schemes in favour of 12 February circular, lenders will now have to individually look at resolution …

No dilution on Feb 12 circular over stressed assets: RBI
6 years ago

No dilution on Feb 12 circular over stressed assets: RBI

Live Mint  

The Reserve Bank of India Saturday maintained that there is no dilution in its stand with regard to February 12 circular on stressed assets recognition and resolution. "It is reiterated that the Reserve Bank maintains its stand on all aspects of the Framework as has been consistently articulated in its communications, including the clarification given during the post-monetary policy press …

RBI allows restructuring of MSME loans up to ₹25 crore
6 years, 2 months ago

RBI allows restructuring of MSME loans up to ₹25 crore

Live Mint  

Mumbai: The Reserve Bank of India on Tuesday allowed lenders to recast loans of stressed micro, small and medium enterprises, provided the total fund and non-fund based exposure to such a borrower does not exceed ₹ 25 crore. “RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January …

Govt tussle with RBI could undermine financial stability; Urjit Patel's exit from central bank credit negative: S&P
6 years, 3 months ago

Govt tussle with RBI could undermine financial stability; Urjit Patel's exit from central bank credit negative: S&P

Firstpost  

New Delhi: Terming the exit of Urjit Patel as credit negative, S&P Global Ratings said the increasing involvement of the government in the affairs of the RBI could undermine the hard-fought improvements in the banking system over the past few years. “In particular, S&P Global Ratings views as credit negative the circumstances leading to the recent resignation of Urjit Patel, …

Challenge Against RBI Circular On Stressed Assets By Power Companies: SC Transfers All Pending Matters Before HCs To Itself, Orders Status quo [Read Order]
6 years, 6 months ago

Challenge Against RBI Circular On Stressed Assets By Power Companies: SC Transfers All Pending Matters Before HCs To Itself, Orders Status quo [Read Order]

Live Law  

The Supreme Court Bench comprising Justice RF Nariman and Justice Indu Malhotra on Tuesday directed that twelve cases pertaining to the Insolvency Proceedings under the new RBI circular pending before High Courts of Madras, Gujarat, Allahabad, and Delhi be transferred to the Apex Court. 12492 of2018 pending before the High Court of Gujarat at Ahmedabad, Civil Misc. Earlier, the Allahabad …

Challenge Against RBI Circular On Stressed Assets By Power Companies: SC Transfers All Pending Matters Before HCs To Itself, Orders Status quo [Read Order]
6 years, 6 months ago

Challenge Against RBI Circular On Stressed Assets By Power Companies: SC Transfers All Pending Matters Before HCs To Itself, Orders Status quo [Read Order]

Live Law  

The Supreme Court Bench comprising Justice RF Nariman and Justice Indu Malhotra on Tuesday directed that twelve cases pertaining to the Insolvency Proceedings under the new RBI circular pending before High Courts of Madras, Gujarat, Allahabad, and Delhi be transferred to the Apex Court. 12492 of2018 pending before the High Court of Gujarat at Ahmedabad, Civil Misc. Earlier, the Allahabad …

Supreme Court provides interim relief to stressed power firms
6 years, 6 months ago

Supreme Court provides interim relief to stressed power firms

Live Mint  

Mumbai: The Supreme Court on Tuesday granted interim relief to stressed power firms, directing lenders to maintain a status quo on the Reserve Bank of India’s circular for banks to resolve these cases within 180 days. Several petitioners, including GMR Energy Ltd; RattanIndia Power Ltd, a Punjab-based textile company; Association of Power Producers ; Independent Power Producers Association of India; …

Allahabad HC Refuses Interim Relief To Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Judgment]
6 years, 6 months ago

Allahabad HC Refuses Interim Relief To Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Judgment]

Live Law  

The Allahabad High Court on Monday refused to grant interim relief to private power companies from the circular issued by the Reserve Bank of India which gives borrowers 180 days' time to clear their dues— a deadline that ended on Monday.The Bench comprising Chief Justice DB Bhosale and Justice Yashwant Varma ruled, "In the ultimate analysis, I have been unable …

Allahabad HC Refuses Interim Relief To Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Judgment]
6 years, 6 months ago

Allahabad HC Refuses Interim Relief To Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Judgment]

Live Law  

The Allahabad High Court on Monday refused to grant interim relief to private power companies from the circular issued by the Reserve Bank of India which gives borrowers 180 days' time to clear their dues— a deadline that ended on Monday.The Bench comprising Chief Justice DB Bhosale and Justice Yashwant Varma ruled, "In the ultimate analysis, I have been unable …

House panel questions RBI on failure to take pre-emptive action against bad loans
6 years, 6 months ago

House panel questions RBI on failure to take pre-emptive action against bad loans

Live Mint  

New Delhi: A Parliamentary committee has questioned the Reserve Bank of India for failing to take pre-emptive action in checking bad loans in the banking system prior to the Asset Quality Review undertaken in December 2015. The issue of rising non-performing assets or bad loans was a legacy issue, and the RBI’s role had not been up to the mark, …

Bankers race to resolve Rs 3.8 trillion bad loans for around 70 accounts as 6-month RBI deadline ends today
6 years, 6 months ago

Bankers race to resolve Rs 3.8 trillion bad loans for around 70 accounts as 6-month RBI deadline ends today

Firstpost  

Banks are trying to come up with a resolution plan for these accounts as going to NCLT will mean large haircuts. Mumbai: With the six-month deadline set by Reserve Bank to finalise resolution plans for around 70 large stressed accounts worth over Rs 3.8 trillion ending on 27 August, banks are burning the midnight oil to avoid bankruptcy proceedings against …

IBC, new stress recognition norms bode well for financial stability, says RBI Deputy Governor Viral Acharya
6 years, 8 months ago

IBC, new stress recognition norms bode well for financial stability, says RBI Deputy Governor Viral Acharya

Firstpost  

RBI Deputy Governor Viral Acharya regretted that amid ongoing churning in the financial sector, governance reforms in the beleaguered PSBs have taken a backseat Mumbai: RBI Deputy Governor Viral Acharya on Tuesday said initiatives like Insolvency and Bankruptcy Code and norms for prompt recognition of bad loans bode well for financial stability despite short-term pain. In the foreword of the …

RBI to FinMin: 12 February circular gives enough space for resolution of bad loans in power sector
6 years, 9 months ago

RBI to FinMin: 12 February circular gives enough space for resolution of bad loans in power sector

Firstpost  

RBI made its stand clear at a stakeholders’ meeting, called by the ministry to discuss the circular, the implementation of which was stayed for the power sector by Allahabad High Court. The Reserve Bank of India on Thursday indicated to the finance ministry that its 12 February circular on new framework for stressed assets provides enough space for resolution of …

Bad Is Turning Good- From SICA To IBC-The Journey Of Bad Loans In India
6 years, 10 months ago

Bad Is Turning Good- From SICA To IBC-The Journey Of Bad Loans In India

Live Law  

India's bad account market is turning good. As per the RBI Report- Stress tests on banks' credit concentration risks, considering top individual borrowers according to their exposures, showed that the impact was significant for two banks, comprising about 1 percent of the aggregate assets, which may fail to maintain 9 percent CRAR in at least one of the scenarios. This …

Changing the culture of corporate credit
6 years, 10 months ago

Changing the culture of corporate credit

Live Mint  

Reserve Bank of India deputy governor N.S. Second, it is argued that even if firms default due to distress, these are genuine borrowers who are put in a difficult position because payments due to them are delayed. Stressed firms, kept in business by the lack of an effective insolvency regime and underreporting by lenders, have hurt India’s economy. Indeed, Vishwanathan …

What RBI’s new bad loan rules mean for banks
6 years, 11 months ago

What RBI’s new bad loan rules mean for banks

Live Mint  

In a speech last week, N.S. Vishwanathan, deputy governor of the Reserve Bank of India, indicated that the central bank may not relax the new framework for resolving stressed loans as requested by banks. The rules, released on 12 February, stipulate that starting 1 March, lenders must implement a resolution plan within 180 days for defaulted loan accounts above Rs2,000 …

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