SBI to seek promoter guarantee, pledged shares for debt recast
4 years, 3 months ago

SBI to seek promoter guarantee, pledged shares for debt recast

Live Mint  

Mumbai: State Bank of India has decided to seek additional security in the form of promoter pledges for listed companies and personal guarantee for unlisted companies in order to restructure debt under RBI’s window. The bank said that in case of listed companies, the latest financials filed with stock exchanges also have to be submitted along with cash budget and projected financials for the period of loan. Several auto parts makers, manufacturing companies and real estate developers have aleady approached financial advisory firms and lawyers to project cash flows to meet financial parameters specified by the Reserve Bank of India. However, for working capital loans, apart from the interest moratorium of six months, the borrower can also get a need-based additional funding, repayable in not more than five years.

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History of this topic

Limitation Period For Both Corporate Debtor And Personal Guarantor Will Commence From Same Date: NCLT Hyderabad
1 month, 1 week ago

Limitation Period For Both Corporate Debtor And Personal Guarantor Will Commence From Same Date: NCLT Hyderabad

Live Law  

The NCLT Hyderabad bench of Sri Rajeev Bhardwaj and Sri Sanjay Puri has held that the Personal Guarantor should be treated on an equal legal footing with the Corporate Debtor, as it is clearly established by the law that the liability of Corporate Debtor and Personal Guarantor are co-extensive in nature. The petitioner submitted that the Guarantee Agreement is a …

Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Is Also ₹1 Crore: NCLT New Delhi
1 month, 2 weeks ago

Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Is Also ₹1 Crore: NCLT New Delhi

Live Law  

The NCLT New Delhi bench of Shri Subrata Kumar Dash and Shri Ashok Kumar Bhardwaj had held that the threshold limit for initiating insolvency process against the personal guarantors under section 95 of the Code would be the same as is with respect to the corporate debtor under section 4 of the IBC i.e. The tribunal further noted that it …

Top news of the day: Public sector banks to lend up to ₹5 lakh for COVID-19 treatment; Monsoon arrival in Kerala delayed to June 3, and more
3 years, 7 months ago

Top news of the day: Public sector banks to lend up to ₹5 lakh for COVID-19 treatment; Monsoon arrival in Kerala delayed to June 3, and more

The Hindu  

Individuals including salaried, non-salaried and pensioners can avail unsecured personal loans from ₹ 25,000 to ₹ 5 lakh to meet COVID-19 treatment. Addressing party workers virtually on the seventh anniversary of the Narendra Modi dispensation at the Centre, the BJP chief said all party MPs, ministers and MLAs will serve people in at least two villages following COVID-19 protocols and …

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5
4 years, 2 months ago

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5

The Hindu  

The Centre has informed the Supreme Court that the difference in the compound interest and simple interest charged for six months of moratorium period on eight categories of loans worth up to ₹2 crore will be paid back to borrowers by November 5, 2020. "The Central Government has directed that all lending institutions shall give effect to the scheme and …

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors
4 years, 3 months ago

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors

News 18  

Citing Kamath Committee recommendations, the Reserve Bank of India has informed the Supreme Court that it has accepted the recommendation for different treatment for sectors namely aviation, automobile manufacturing, roads and wholesale trading. Citing the September 7 special window notification, the RBI insisted that banks have sufficient flexibility to accommodate the impact of Covid-19 while specifying specific ratios for determining …

SBI loan restructuring: How interest will be calculated during moratorium extension period
4 years, 3 months ago

SBI loan restructuring: How interest will be calculated during moratorium extension period

India Today  

A few days ago, the country’s largest lender State Bank of India came out with a set of rules and regulations for offering an extension on loan repayments to those affected financially by the Covid-19 pandemic. However, there are several key aspects that Covid-affected customers need to know before availing moratorium extension on repayments under SBI’s loan repayment framework. Loan …

Delhi HC Stays Insolvency Proceedings Initiated Against Anil Ambani For Rs 1200 Crores Personal Guarantee To SBI
4 years, 4 months ago

Delhi HC Stays Insolvency Proceedings Initiated Against Anil Ambani For Rs 1200 Crores Personal Guarantee To SBI

Live Law  

In a plea moved by Anil Ambani challenging the appointment of a Resolution Professional for a personal guarantee given by him for loans taken by Reliance Communications Ltd and Reliance Infratel Ltd from the State Bank of India, the Delhi High Court has issued notice and stayed the proceedings initiated against him under Part III of the Insolvency & Bankruptcy …

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium
4 years, 4 months ago

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium

News 18  

State Bank of India will consider loan restructuring for eligible borrowers after the end of moratorium period which draws to a close on August 31, according to its Managing Director Dinesh Khara. “Restructuring of eligible loans will also be considered as and when the moratorium comes to an end at the end of August,” he said, speaking at a conference …

Loan interest can’t be waived, SBI tells SC
4 years, 7 months ago

Loan interest can’t be waived, SBI tells SC

Live Mint  

Banks are of the view that interest on loans cannot be waived for the six months of the repayment moratorium allowed by the central bank, State Bank of India told the Supreme Court on Friday. SBI’s statement came in an intervention application it filed on Friday in a plea seeking a waiver on interest charges during the course of the …

Loan moratorium extension will take care of cash-flow disruptions: SBI chief
4 years, 7 months ago

Loan moratorium extension will take care of cash-flow disruptions: SBI chief

Live Mint  

The Reserve Bank of India’s extension on Friday of the ongoing loan moratorium by another three months will take care of cash-flow disruptions for borrowers despite the absence of a one-time debt recast relief, said Rajnish Kumar, chairman, State Bank of India. “Our tendency has become that whatever has been given, just take it and ignore it and then start …

About 20% SBI borrowers avail loan repayment moratorium; banks can go for debt recast: Chairman Rajnish Kumar
4 years, 7 months ago

About 20% SBI borrowers avail loan repayment moratorium; banks can go for debt recast: Chairman Rajnish Kumar

Firstpost  

The SBI chairman advised borrowers to pay their loans if they are not facing any funding challenge. Mumbai: State Bank of India chairman Rajnish Kumar on Friday said close to 20 percent of the bank’s borrowers have availed moratorium on repayment of term loans instalments. On 27 March, the central bank had announced a three-month moratorium on payment of all …

RBI extends loan repayment moratorium by 3 months
4 years, 7 months ago

RBI extends loan repayment moratorium by 3 months

The Hindu  

The Reserve Bank of India has extended the repayment moratorium of loan repayment for term loans by another three months, till August 31. “In view of the extension of the lockdown and continuing disruptions on account of COVID-19, it has been decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from …

SBI to extend loan moratorium to NBFCs
4 years, 8 months ago

SBI to extend loan moratorium to NBFCs

The Hindu  

In a move that could give a huge relief to the non-banking finance companies facing a cash crunch, the State Bank of India has decided to extend loan moratorium to these entities. The move comes days after a recent meeting between the Reserve Bank of India and commercial banks wherein the issues of moratorium and liquidity flow to NBFCs were …

SBI to disburse Rs 700 cr to Mumbai circle MSMEs by June-end
4 years, 8 months ago

SBI to disburse Rs 700 cr to Mumbai circle MSMEs by June-end

India TV News  

State Bank of India, the country's largest lender, has set a target of disbursing Rs 700 crore to MSMEs in the Mumbai circle by the end of June, to help them tide over liquidity crisis due to the COVID-19 lockdown. "SBI will boost flow of credit to MSMEs in this challenging period by reassessing their working capital limit and also …

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans
4 years, 8 months ago

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans

Firstpost  

Bankers believed that some safety net has to be created for both industry and banks for survival first, sources said, adding, revival would follow. Some of the key recommendations included blanket credit guarantee for MSME loans, one-time loan restructuring for sectors hit hard by COVID-19 and raising of moratorium and relief for the NBFC sector, sources said. Based on the …

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later
4 years, 9 months ago

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later

Firstpost  

The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according to the moratorium scheme announced by state-owned banks New Delhi: The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according …

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months
4 years, 9 months ago

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months

India TV News  

India's biggest bank, the State Bank of India on Friday announced that all term loan EMIs will be deferred by three months automatically. Announcing the decision, SBI Chairman Rajnish Kumar told CNBC TV, "Installments will get automatically deferred by 3 months for term loans and customers don't have to apply to banks for it." Addressing media, the Reserve Bank of …

SBI moves to extend emergency credit line
4 years, 9 months ago

SBI moves to extend emergency credit line

Live Mint  

India’s largest lender State Bank of India on Friday decided to extend an emergency credit line to eligible corporate borrowers and small businesses to meet their liquidity needs in the wake of the Covid-19 pandemic, according to a document seen by Mint. The document, an internal SBI circular issued on Friday, said that the Covid-19 emergency credit line will be …

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