NPA issue: Will RBI's 12 February circular help expedite bad loan recovery? Signs indicate it is on right path
5 years, 10 months ago

NPA issue: Will RBI's 12 February circular help expedite bad loan recovery? Signs indicate it is on right path

Firstpost  

This smorgasbord of schemes didn’t even dent the NPA problem. In a way, 12 February, 2018 marked the end of an era best characterised by the late J Paul Getty, oil billionaire, who said, “When you owe the bank $100, it’s your problem; when you owe the bank $100 million, it’s the bank‘s problem”. Out of a total of more than 4.65 million cases, over a period of nearly two decades, and out of a total of over Rs 2.21 lakh crore dues, recoveries amounted to just Rs 22,800 crore, or roughly 11 percent. The RBI also introduced an Asset Quality Review of loan classification norms which didn’t affect bank behaviour either. In FY18, the write-offs amounted to more than Rs 1.44 lakh crore; over the last four financial years, banks have written off more than Rs 3.57 lakh crore.

Cases Bank Companies Debt Loan Restructuring Crore Rbi Banks Lakh Problem Ibc Jlf Cdr 12 February 11 Percent Npa Issue  bank  recovery  restructuring  right  rbis  problem  cases  signs  loan  banks  indicate  debt  path  lakh  companies  help  crore  rs  npa  issue

History of this topic

Gross NPA of banks decline to 12-year low of 2.6%, bad loan ratio to worsen in 2026: RBI Report
2 weeks, 2 days ago

Gross NPA of banks decline to 12-year low of 2.6%, bad loan ratio to worsen in 2026: RBI Report

Live Mint  

The Reserve Bank of India said that banks' asset quality improved in 2024, with the gross non-performing assets or bad loans ratio falling to a 12-year low of 2.6 per cent in September 2024, driven by falling slippages and steady credit demand. "Buoyed by falling slippages, higher write-offs and steady credit demand, the GNPA ratio of 37 scheduled commercial banks …

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

Banks write off ₹10.57 lakh crore in 5 years, make NPA recovery worth ₹7.17 lakh cr: FinMin
1 year, 1 month ago

Banks write off ₹10.57 lakh crore in 5 years, make NPA recovery worth ₹7.17 lakh cr: FinMin

The Hindu  

Banks have written off ₹10.57 lakh crore during the last five financial years, of which ₹5.52 lakh crore was in respect of loans pertaining to large industries, the government informed the Parliament on Tuesday. "As per RBI data, scheduled commercial banks have written off an aggregate loan amount of ₹10.57 lakh crore during the last five financial years," Minister of …

Cleaning up of NPA mess will propel the economy
1 year, 5 months ago

Cleaning up of NPA mess will propel the economy

Hindustan Times  

To understand the complexities of India’s banking sector, one needs to grapple with a term that tends to recur with unsettling regularity – non-performing assets. The gross NPA ratio of scheduled commercial banks stood at 4.9%, and ₹66.6 lakh crore in March 2014 were bad loans. The National Democratic Alliance government took several steps to address the NPA problem, including …

Parliament proceedings | Loans worth 10.09 lakh crore written off in 5 years: FM Nirmala Sitharaman
2 years ago

Parliament proceedings | Loans worth 10.09 lakh crore written off in 5 years: FM Nirmala Sitharaman

The Hindu  

Loans amounting to over ₹10.09 lakh crore have been written off by scheduled commercial banks in the past five financial years but the process of recovery of dues from the NPA accounts is an on-going process, Finance Minister Nirmala Sitharaman told the Lok Sabha on December 19, 2022. Ms Sitharaman said RBI data point to public sector banks recovering ₹4,80,111 …

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’
2 years, 5 months ago

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’

The Hindu  

Concrete steps taken by the government and RBI helped banks recover bad loans worth more than ₹8.6 lakh crore in the last eight financial years, the government informed Parliament on Monday. Several factors - including prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by banks, aggressive lending during upturns, improper risk pricing and poor credit underwriting …

Corporate India needs a proactive mindset for debt resolution
3 years ago

Corporate India needs a proactive mindset for debt resolution

Live Mint  

Over the years, concerted efforts have been made to determine and resolve non-performing assets of banks and financial institutions in our country. As per the RBI’s March Financial Stability Report, gross NPAs are expected to be slightly elevated at around 11.22% of overall credit deployment by March 2022 for all scheduled commercial banks. In an effort to trim NPAs, a …

Parliament proceedings | Banks' NPAs decline to ₹8.08 lakh crore in Sept 2020: Govt
3 years, 11 months ago

Parliament proceedings | Banks' NPAs decline to ₹8.08 lakh crore in Sept 2020: Govt

The Hindu  

Non-performing assets or bad loans of the banking sector came down from a high of ₹10.36 lakh crore at the end of March 2018 to ₹8.08 lakh crore at the end of September 2020 due to various initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday. As a result of the Asset …

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?
4 years ago

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?

The Hindu  

The ratio of Gross Non-Performing Assets in Indian banks decreased in FY20 and FY21 despite the impact of COVID-19 and the economic downturn that preceded it. This was mostly due to three factors: 1) Banks wroteoff relatively more NPAs in FY20 to clean their balance sheets; 2) Some large NPA accounts got resolved through debt-recovery channels; and 3) It is …

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?
4 years ago

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?

The Hindu  

The story so far: After losses in two consecutive years, India’s scheduled commercial banks turned profitable in 2019-20. The Reserve Bank of India reckons that the first half of 2020-21 saw even greater improvements in banks’ vital statistics, with non-performing assets falling to 7.5% of outstanding loans by September 2020. What former Chief Economic Adviser Arvind Subramanian had called India’s …

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

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

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

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

Finance Ministry Working with RBI on Need for Loan Restructuring, Says FM Nirmala Sitharaman
4 years, 5 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 …

Loan recasts to only defer problem, not solve it: S&P
4 years, 6 months ago

Loan recasts to only defer problem, not solve it: S&P

The Hindu  

Amid reports of the RBI mulling restructuring of loans, global rating agency S&P on Tuesday said that a loan recast would only defer recognition of NPAs and not solve the problem. The agency also said operational outages and the recession because of the pandemic will have a deeper and longer impact on lenders than previously assumed, and estimated the gross …

Daily Bulletin: SC to hear Ayodhya case today; SC to hear Unnao case; India evaluates 'consular access' offer to Kulbhushan Jadhav; day's top stories
5 years, 5 months ago

Daily Bulletin: SC to hear Ayodhya case today; SC to hear Unnao case; India evaluates 'consular access' offer to Kulbhushan Jadhav; day's top stories

Firstpost  

The bench, which had perused a report about the progress of mediation process on Ayodhya dispute till 18 July, had said that its contents will remain confidential as per its earlier order. Ayodhya land dispute case: SC to consider mediation panel’s report at 2 pm, to fix day-to-day hearing schedule The Supreme Court is likely to consider on Friday the …

Banks bad loans down at Rs 9.34 lakh cr at FY19-end: Nirmala Sitharaman
5 years, 5 months ago

Banks bad loans down at Rs 9.34 lakh cr at FY19-end: Nirmala Sitharaman

India TV News  

Total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crore in the 2018-19 fiscal on the back of steps taken by the government, Finance Minister Nirmala Sitharaman said Tuesday. "Enabled by these steps, as per RBI data on global operations, the NPAs of scheduled commercial banks, after reaching a peak of Rs 10,36,187 …

RBI’s revised debt resolution rules likely post-election
5 years, 9 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 …

RBI to issue revised circular on bad loan resolution: Shaktikanta Das
5 years, 9 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, 9 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 …

SC quashes RBI Feb 12 circular: What it means for deal activity in India
5 years, 9 months ago

SC quashes RBI Feb 12 circular: What it means for deal activity in India

Live Mint  

Mumbai: India-focused distressed assets funds may see higher deal activity in pre-National Company Law Tribunal cases with the Supreme Court quashing the Reserve Bank of India’s 12 February 2018 circular on Tuesday. RBI had on 12 February 2018 ordered lenders to begin bankruptcy proceedings against defaulters before NCLT if they failed to make interest payment within 180 days of missing …

One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace
5 years, 11 months ago

One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace

Firstpost  

In a bid to hasten the resolution of bad loans, RBI tightened rules to make banks identify and tackle any non-payment of loans rapidly by issuing a circular on 12 February 2018 Exactly a year ago, in a bid to hasten the resolution of bad loans, the Reserve Bank of India had tightened rules to make banks identify and tackle …

Banks recover ₹40,400 crore from defaulters: RBI report
6 years ago

Banks recover ₹40,400 crore from defaulters: RBI report

Live Mint  

Mumbai: Banks have seen a significant improvement in recovery of stressed assets helped by the Insolvency and Bankruptcy Code and amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, during FY18, according to the RBI data. The various channels through which lenders recovered their bad loans include the Insolvency and Bankruptcy Code, SARFAESI Act, …

A weak FY19 wrap-up to give way to stronger FY20 for banks
6 years ago

A weak FY19 wrap-up to give way to stronger FY20 for banks

Live Mint  

Indian banks didn’t have an easy 2018, but the next two quarters are likely to be better than the previous ones. The one-year ahead earnings per share estimate for banks has seen just 4% increase, while the two-year forward EPS estimate is far higher at 24%. Here are five points that give investors comfort on banks in the medium-term: Corporate …

Bank of India posts ₹1,156 crore loss in Q2 on surging NPAs
6 years, 2 months ago

Bank of India posts ₹1,156 crore loss in Q2 on surging NPAs

Live Mint  

Mumbai: Bank of India on Monday reported losses of ₹ 1,156.25 crore for the September quarter as bad loans continued to mount and provisions soared. Its asset quality deteriorated as gross non-performing assets rose 24.85% to ₹ 61,560.65 crore in September quarter from ₹ 49,306.90 crore in the corresponding quarter of last year. “We expect to recover around ₹ 2,000 …

All you need to know about what the Modi govt is doing to solve the NPA mess
6 years, 3 months ago

All you need to know about what the Modi govt is doing to solve the NPA mess

Op India  

Back in the 1980s, banks were institutions of trust and the branch managers were seen as powerful people. From 1947 to 2007, in 60 years, banks gave loans worth 18 Lakh Crores while from 2008 to 2014; loans of the same banks scaled up to 52 Lakh Crores. By 2011 country’s large public sender lenders like SBI and Central Bank …

Fearing action through Insolvency and Bankruptcy Code, defaulters pay up Rs 1.1 lakh crores
6 years, 3 months ago

Fearing action through Insolvency and Bankruptcy Code, defaulters pay up Rs 1.1 lakh crores

Op India  

The Insolvency and Bankruptcy Code has proved to be a game changer for the Indian banks. So far, National Company Law Tribunal has admitted 977 cases where the lenders or the operational creditors filed insolvency action against the defaulters, says a report. The fear of strict action among the defaulters has led to the recovery of 1.1 lakh crore in …

Arun Jaitley defends loan write-offs; says they don't lead to waiver, recovery still pursued
6 years, 3 months ago

Arun Jaitley defends loan write-offs; says they don't lead to waiver, recovery still pursued

Firstpost  

Finance Minister Arun Jaitley on Monday defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the exercise helps lenders clean up their balance sheets and achieve taxation efficiency. New Delhi: Finance Minister Arun Jaitley on Monday defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the …

NPAs on a decline as loan recovery picking up, says Arun Jaitley after annual PSU banks' review meet
6 years, 3 months ago

NPAs on a decline as loan recovery picking up, says Arun Jaitley after annual PSU banks' review meet

Firstpost  

Jaitley said after the Insolvency and Bankruptcy Code came into force, which calls for an auction of assets of loan defaulting entities, recoveries have picked up. New Delhi: Finance Minister Arun Jaitley on Tuesday said bad debts or NPAs in the banking system are on the decline as recoveries of unpaid loans have picked up. Speaking to reporters after the …

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV
6 years, 3 months ago

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV

India TV News  

Union Finance Minister Arun Jaitley on Saturday said that bad debts or Non-performing Assets in the banking system are on the decline as recoveries of unpaid loans have picked up. The finance minister also said that the new insolvency law, indirect tax regime and demonetization will help drive India's growth rate and sustain it at 8 per cent. Jaitley said …

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road
6 years, 3 months ago

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road

Firstpost  

We now have one big problem which the Narendra Modi government is trying to postpone further by merging different public sector banks. As Raghuram Rajan, former governor of the Reserve Bank of India put it in a recent note to the Chairman of the Parliament Estimates Committee, Murli Manohar Joshi: “A larger number of bad loans were originated in the …

NPA cases worth Rs 8,000 cr likely to be resolved during this fiscal: IFCI
6 years, 3 months ago

NPA cases worth Rs 8,000 cr likely to be resolved during this fiscal: IFCI

India TV News  

State-owned IFCI has intensified its recovery process and expects resolution of several NPA cases worth Rs 8,000 crore during the course of the year, a top company official said. Earlier this year, IFCI saw recovery from resolution of various loan default cases, including Bhushan Steel, Monnet Ispat, Oswal Foods, Blue Coast Hotels and Rama Industries. Giving details of the future …

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19
6 years, 4 months ago

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19

Firstpost  

The combined impact of the increase in provisioning against NPAs and mark-to-market treasury losses on account of the hardening of yields eroded the profitability of banks, resulting in net losses, RBI report said New Delhi: Reserve Bank of India said on Wednesday that banks will witness further deterioration in their non-performing assets or bad loans due to the “economic situation …

House panel questions RBI on failure to take pre-emptive action against bad loans
6 years, 4 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, …

NPA crisis: Parliamentary panel questions RBI on failure to take preemptive action against bad loans
6 years, 4 months ago

NPA crisis: Parliamentary panel questions RBI on failure to take preemptive action against bad loans

Firstpost  

The panel, which includes former prime minister Manmohan Singh as a member, wanted to know the reasons of ever-greening of stressed accounts through restructuring schemes of the Reserve Bank of India. New Delhi: A Parliamentary committee has questioned RBI for failing to take preemptive action in checking bad loans in the banking system prior to the Asset Quality Review undertaken …

RBI deadline for resolution of ₹ 3.8 trillion in NPAs ends today
6 years, 4 months ago

RBI deadline for resolution of ₹ 3.8 trillion in NPAs ends today

Live Mint  

New Delhi: With the deadline set up by Reserve Bank of India for resolution of stressed assets worth around ₹ 3.8 trillion coming to an end today, all eyes are on the expected Allahabad high court judgement on a clutch of petitions against the central bank’s 12 February circular. The Allahabad High Court had earlier ordered lenders to avoid acting …

Bad loans: United Bank of India expects Rs 3,000 crore recovery from NCLT resolutions, says MD Pawan Bajaj
6 years, 6 months ago

Bad loans: United Bank of India expects Rs 3,000 crore recovery from NCLT resolutions, says MD Pawan Bajaj

Firstpost  

United Bank of India is expecting to recover around Rs 3,000 crore out of a total of Rs 5,951 crore, by way of resolutions through the National Company Law Tribunal, the public sector lender’s MD and CEO Pawan Bajaj said on Friday Kolkata: United Bank of India is expecting to recover around Rs 3,000 crore out of a total of …

Bank NPAs to touch 12.2% by March 2019: Why RBI’s latest Financial Stability Report is a must-read for LIC
6 years, 6 months ago

Bank NPAs to touch 12.2% by March 2019: Why RBI’s latest Financial Stability Report is a must-read for LIC

Firstpost  

For Indian banking sector, the pain from non-performing assets is far from over. The latest Financial Stability Report from the RBI, released yesterday, gives a baseline scenario of bank’s gross NPAs rising to 12.2 percent by March 2019 from 11.6 percent in March 2018. Even the Rs 2.11 lakh crore capital infusion plan announced by the government for state-run banks …

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