Govt asks banks to roll out loan restructuring scheme by Sep 15, provide support to borrowers
4 years, 3 months ago

Govt asks banks to roll out loan restructuring scheme by Sep 15, provide support to borrowers

India TV News  

Finance Minister Nirmala Sitharaman on Thursday asked banks and NBFCs to roll out loan restructuring scheme for COVID-19 related stress by September 15, and provide adequate support to the borrowers following the lifting of moratorium on repayment of debts. During the meeting, the minister impressed upon the lenders that as and when the moratorium on loan repayments is lifted, borrowers must be given support and COVID-19 related distress must not impact the lenders' assessment of their creditworthiness, an official statement said. In the three-hour meeting, the statement said, the Finance Minister asked lenders to identify eligible borrowers and reach out to them, and the quick implementation of a sustained resolution plan by lenders for the revival of every viable business. The Finance Minister also emphasised that resolution schemes must be rolled out by lenders by September 15, 2020, and a sustained media campaign to create awareness be carried out thereafter, the statement said.

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History of this topic

Don't intimidate borrowers, no calling before 8 am & after 7 pm, RBI directs loan recovery agents
2 years, 4 months ago

Don't intimidate borrowers, no calling before 8 am & after 7 pm, RBI directs loan recovery agents

India TV News  

RBI to borrowing agents: The Reserve Bank of India issued a fresh instruction, which directs loan recovery agents not to intimidate borrowers. While issuing additional instructions to regulated entities including banks, NBFCs and ARCs, Reserve Bank said it has observed that recovery agents are deviating from its instructions with regard to the recovery of loans. RBI has issued guidelines from …

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA
3 years, 8 months ago

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA

Hindustan Times  

The rising Covid-19 cases has again raised concerns on asset quality of retail loans from non-banking financial companies and housing finance companies, according to investment information agency ICRA. Following the second wave of the pandemic, ICRA expects securitisation volumes to again get impacted in Q1 FY22 as NBFCs and HFCs will be more selective in fresh lending. However, said ICRA, …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 10 months ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget due to be presented on Monday, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross …

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address
3 years, 10 months ago

New NPA Cycle, Privatisation Among Ailments in Banking that Union Budget 2021 is Expected to Address

News 18  

With the Union Budget less than a week away, stakeholders in the banking sector expect the Centre to go beyond recapitalisation of bonds to infuse capital in public sector banks. The RBI’s stress test recently revealed that bank NPAs could jump from 7.5 per cent in September last year to 13.5 per cent by September this year. The gross non-performing …

Policy roll-back may dent banks’ health, says RBI
3 years, 11 months ago

Policy roll-back may dent banks’ health, says RBI

The Hindu  

In 2020-21, as policy support is rolled back, the impact of the COVID-19 pandemic may dent the health of the banks and non-banks, the Reserve Bank of India said in its Report on Trend and Progress of Banking in India 2019-20. This is a statutory publication in compliance with Section 36 of the Banking Regulation Act, 1949 and this Report …

Explained: Why India's banks will face major NPA challenge in 2021
3 years, 11 months ago

Explained: Why India's banks will face major NPA challenge in 2021

India Today  

The coronavirus pandemic has had a devastating impact on banks and financial institutions around the world as the global economic crisis has led to a rise in defaults and bad loans. It also expects the Indian banking sector’s bad loans to shoot up to 10-11 per cent of the total loans as on March 31, 22 from eight per cent …

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P
4 years, 1 month ago

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

The Hindu  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11% 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 proportion of …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 1 month 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 …

RBI announces Co-lending scheme for banks, NBFCs for priority sector
4 years, 1 month ago

RBI announces Co-lending scheme for banks, NBFCs for priority sector

Deccan Chronicle  

Mumbai: In a bid to improve the flow of credit to the unserved sector of the economy and to make funds affordable for them, the Reserve Bank of India on Wednesday revised the guidelines for banks and NBFCs including housing finance companies to jointly lend to the priority sector. The primary focus of the revised scheme, rechristened as “Co-Lending Model”, …

Only loan accounts without default as of 1 March can apply for restructuring, clarifies RBI
4 years, 2 months ago

Only loan accounts without default as of 1 March can apply for restructuring, clarifies RBI

Firstpost  

The Indian central bank also clarified that all farm credit exposures, including from NBFCs, can be recast under the pandemic-related resolution framework issued in August, but loans to allied activities are excluded The Reserve Bank of India has clarified that loans which have remained standard without any defaults as of March 1, 2020, will be eligible for restructuring under the …

RBI loan restructuring plan | A difficult choice for borrowers
4 years, 3 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 …

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon
4 years, 3 months ago

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon

Live Mint  

The Reserve Bank of India is likely to announce the financial parameters of its proposed loan restructuring scheme soon. In his interview to CNBC Awaaz, RBI Governor Shaktikanta Das said that banks can extend the loan moratorium by 3, 6 or even 12 months under the one-time restructuring. To mitigate the hardships faced by the borrowers during coronavirus pandemic, the …

Finance Minister Asks Banks to Roll Out Loan Restructuring Scheme by September 15
4 years, 3 months ago

Finance Minister Asks Banks to Roll Out Loan Restructuring Scheme by September 15

News 18  

Finance Minister Nirmala Sitharaman on Thursday asked banks and NBFCs to roll out loan restructuring scheme for COVID-19 related stress by September 15, and provide adequate support to the borrowers following the lifting of moratorium on repayment of debts. During the meeting, the minister impressed upon the lenders that as and when the moratorium on loan repayments is lifted, borrowers …

FM Nirmala Sitharaman to Meet Heads of Banks, NBFCs on Loan Recast Today
4 years, 3 months ago

FM Nirmala Sitharaman to Meet Heads of Banks, NBFCs on Loan Recast Today

News 18  

Finance Minister Nirmala Sitharaman will hold a review meeting with heads of banks and NBFCs on Thursday for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans. Besides assessing the preparedness of banks on the debt recast, sources said, the meeting will also review the progress of various schemes announced under …

Finance Minister Sitharaman to meet heads of banks, NBFCs on loan recast on Thursday
4 years, 3 months ago

Finance Minister Sitharaman to meet heads of banks, NBFCs on loan recast on Thursday

India TV News  

Finance Minister Nirmala Sitharaman will hold a review meeting with heads of banks and NBFCs on Thursday for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans. Besides assessing the preparedness of banks on the debt recast, sources said, the meeting will also review the progress of various schemes announced under …

Banks Free to Restructure Loans, but Can't Penalise Borrowers Availing Moratorium Benefit, SC Told
4 years, 3 months ago

Banks Free to Restructure Loans, but Can't Penalise Borrowers Availing Moratorium Benefit, SC Told

News 18  

Banks are free to restructure loans but they cannot penalise honest borrowers by charging interest on deferred EMI payments under the moratorium scheme during the COVID-19 pandemic, a petitioner opposing the move said in the Supreme Court on Wednesday. A bench headed by Justice Ashok Bhushan, which commenced final hearing on a batch of pleas raising the issue of interest …

FM Sitharaman to meet bankers on loan recast on Thursday
4 years, 3 months ago

FM Sitharaman to meet bankers on loan recast on Thursday

The Hindu  

Ahead of the roll out of one-time debt recast for resolution of COVID-19 related stress in bank loans, Finance Minister Nirmala Sitharaman will hold a review meeting with bankers and heads of non-banking financial companies on September 3 for smooth and speedy implementation of the scheme. “The review will focus on enabling businesses and households to avail of the revival …

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium
4 years, 3 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 …

RBI chief says loan restructuring plan will help revive Indian economy
4 years, 4 months ago

RBI chief says loan restructuring plan will help revive Indian economy

Live Mint  

New measures to allow Indian lenders to restructure loans will provide a “durable” resolution for cash-strapped businesses and help revive the economy, according to the central bank’s chief. “On one hand health of banks is very important and on the other hand businesses are under a lot of stress due to covid,” Reserve Bank of India Governor Shaktikanta Das said …

Amid churn, non-banks explore consolidation option
4 years, 4 months ago

Amid churn, non-banks explore consolidation option

Live Mint  

India’s non-bank lenders, staring at ₹1.51 trillion debt repayments due in the next six months, are rushing to raise fresh equity and pursuing mergers with bigger peers to avert defaults, as the coronavirus pandemic darkens the outlook for the sector that has struggled since the collapse of Infrastructure Leasing and Financial Services Ltd nearly two years ago. “In many instances, …

Finance Ministry Working with RBI on Need for Loan Restructuring, Says FM Nirmala Sitharaman
4 years, 4 months ago

Finance Ministry Working with RBI on Need for Loan Restructuring, Says FM Nirmala Sitharaman

News 18  

Finance Minister Nirmala Sitharaman on Friday said the government is working with the RBI on need for restructuring of loans to help industry tide over the impact of COVID-19. In principle, the idea that there may be a restructuring required, is well taken," Sitharaman said while addressing Ficci's National Executive Committee Meeting. Sitharaman said the Finance Ministry is working with …

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