RBI issues new NPA recognition norms: The guidelines put onus on creditors to take call on resolution plan, but will it work?
5 years, 9 months ago

RBI issues new NPA recognition norms: The guidelines put onus on creditors to take call on resolution plan, but will it work?

Firstpost  

RBI guidelines will definitely bring in more transparency in terms of letting all the lenders know that there is a problem and that they would also have to work towards a solution through the RP After the Supreme Court had struck down the earlier notification of the RBI relating to dealing with stressed assets, the fresh set of rules were eagerly awaited. The new stressed assets resolution framework released on Friday resembles very closely the earlier one except that it does not force companies to be led to the Insolvency and Bankruptcy Code. Also the earlier schemes such as Corporate Debt Restructuring Scheme, Flexible Structuring of Existing Long Term Project Loans, Strategic Debt Restructuring Scheme etc. These guidelines will definitely bring in more transparency in terms of letting all the lenders know that there is a problem and that they would also have to work towards a solution through the RP.

Resolution Work Resolution Plan Plan Rbi Banks Lenders Default Ica Sma Ibc Earlier Npa Npas  plan  place  restructuring  guidelines  resolution  norms  shall  issues  earlier  onus  recognition  npa  rbi  rp  banks  lenders  default  work

History of this topic

Order Approving Resolution Plan Passed Beyond 330 Days Cannot Be Questioned When Application Seeking Approval Was Filed Within CIRP Period: NCLAT
1 month ago

Order Approving Resolution Plan Passed Beyond 330 Days Cannot Be Questioned When Application Seeking Approval Was Filed Within CIRP Period: NCLAT

Live Law  

The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra has held that when an order approving the Resolution Plan is passed by the Adjudicating Authority after expiry of 330 days but the application seeking approval was filed within the stipulated time period, it cannot be said the plan was approved after the …

NCLT Mumbai: Financial Creditor Can't Initiate CIRP Against Successful Resolution Applicant On Default Of Payment As Per Resolution Plan
1 year, 2 months ago

NCLT Mumbai: Financial Creditor Can't Initiate CIRP Against Successful Resolution Applicant On Default Of Payment As Per Resolution Plan

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Shri Anil Raj Chellan held that the Financial Creditor cannot initiate a Corporate Insolvency Resolution Process application against the Successful Resolution Applicant on default in payment to Stakeholders/Creditors as per terms of the approved Resolution Plan under Insolvency and Bankruptcy Code, 2016. Where the corporate debtor, any …

NCLT extends Go First’s resolution timeline by 90 days
1 year, 4 months ago

NCLT extends Go First’s resolution timeline by 90 days

Live Mint  

New Delhi: The National Company Law Tribunal on Thursday granted Go First airline a 90-day extension for its Corporate Insolvency Resolution Process, now effective from 6 November to 4 February, as the bankrupt carrier seeks to revive its operations. The tribunal has asked the resolution professional overseeing Go First's insolvency to submit a 90-day action plan. The move offers temporary …

IBC- Once Resolution Plan Is Approved, No Modifications Are Permissible : Supreme Court
2 years ago

IBC- Once Resolution Plan Is Approved, No Modifications Are Permissible : Supreme Court

Live Law  

The Supreme Court has held that the declaration made by the NCLT to the effect that the trademarks “Deccan Chronicle” and “Andhra Bhoomi”, which originally belonged to Deccan Chronicle Holdings Ltd., continues to be under the ownership of DCHL post the approval of resolution plan, would amount to impermissible modification of resolution plan as the same was silent on this …

Loan Moratorium Case- No Requirement Of Specific Resolution Plan For Borrowers For Invocation Of Resolution Framework: RBI Tells Supreme Court
4 years, 3 months ago

Loan Moratorium Case- No Requirement Of Specific Resolution Plan For Borrowers For Invocation Of Resolution Framework: RBI Tells Supreme Court

Live Law  

Reserve Bank of India has informed the Top Court that borrowers opting for resolution of COVID-related stressed loans shall not be required to submit any specific plans. RBI has stated that borrowers may invoke resolution framework by submitting a request to the lending institutions.The Resolution Framework does not require any resolution plan in any form to be submitted to the. …

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 …

Finance Minister Asks Banks to Roll Out Loan Restructuring Scheme by September 15
4 years, 6 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 …

RBI allows banks to restructure retail loans
4 years, 7 months ago

RBI allows banks to restructure retail loans

Live Mint  

Though the Reserve Bank of India did not extend the moratorium in its monetary policy review on Thursday, it allowed banks to restructure the loans of borrowers who are in financial difficulty and are unable to repay them. In his speech, RBI governor Shaktikanta Das, said, “The disruptions caused by COVID-19 have led to heightened financial stress for borrowers across …

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 …

DHFL crisis: Lenders meeting today to cobble up a resolution plan, still in process of signing inter-creditor agreement
5 years, 8 months ago

DHFL crisis: Lenders meeting today to cobble up a resolution plan, still in process of signing inter-creditor agreement

Firstpost  

The lenders, which had last met on 1 July, are still in the process of signing an inter-creditor agreement for the company Mumbai: The consortium of 31 lenders to the troubled Dewan Housing Finance are meeting on Thursday to discuss a resolution plan for the third-largest pure-play mortgage lender, sources said Wednesday. The lenders, which had last met on 1 …

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 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 May 23
5 years, 11 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 …

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 …

NCLT, Mumbai Says CoC Not Right In Rejecting Resolution Plan Only Coz It Was Sent After Cut-Off Date [Read Order]
6 years, 3 months ago

NCLT, Mumbai Says CoC Not Right In Rejecting Resolution Plan Only Coz It Was Sent After Cut-Off Date [Read Order]

Live Law  

Tribunal says Code is paramount, not the RegulationsObserving that when there is a conflict between the Regulations and the Insolvency Code, the object of the Code is paramount and not the Regulations which are formed only for the just implementation of the Code, the Mumbai bench of National Company Law Tribunal has held that the Committee of Creditors of a …

Bankers race to resolve Rs 3.8 trillion bad loans for around 70 accounts as 6-month RBI deadline ends today
6 years, 7 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 …

Bankers rush to finalise plans to resolve problem of NPAs worth Rs 3.8 trillion ahead of RBI's 27 August deadline
6 years, 7 months ago

Bankers rush to finalise plans to resolve problem of NPAs worth Rs 3.8 trillion ahead of RBI's 27 August deadline

Firstpost  

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 Monday, banks are burning midnight oil to avoid bankruptcy proceedings against these defaulters who are mostly power producers. “A few banks have already sanctioned resolution plans for some cases and others are in the …

NPA resolution: Sunil Mehta-led panel to issue operational guidelines for inter-creditor agreement
6 years, 7 months ago

NPA resolution: Sunil Mehta-led panel to issue operational guidelines for inter-creditor agreement

Firstpost  

The inter-creditor agreement, under the Project Sashakt, seeks to resolve loans under Rs 50 crore or more which are under consortium lending but under Rs 500 crore Mumbai: The Sunil Mehta-led panel will soon come out with the operational guidelines for banks and other financial institutions which have the signed the inter-creditor agreement providing details about the timelines to be …

Banks sign inter-creditor agreement on resolving NPAs: Goyal
6 years, 8 months ago

Banks sign inter-creditor agreement on resolving NPAs: Goyal

India TV News  

Indian banks and financial institutions on Monday entered into an inter-creditor agreement to expedite the resolution of banks' non-performing assets, or bad loans, and ensure smooth credit flow, acting Finance Minister Piyush Goyal said. The agreement, as suggested by a committee headed by state-run Punjab National Bank Chairman Sunil Mehta, is a "huge step forward" towards resolving the stressed assets …

SBI, 23 other lenders sign pact to fast-track bad loan resolution
6 years, 8 months ago

SBI, 23 other lenders sign pact to fast-track bad loan resolution

Live Mint  

Mumbai: Twenty-four banks led by the State Bank of India on Monday signed the inter-creditor agreement that aims to fast-track the resolution of bad loans. According to the agreement, lenders with exposure to stressed accounts will appoint a lead bank as its agent to formulate a resolution plan. The agreement also says that the lead bank will submit the resolution …

No relaxation in new bad loan rules, indicates RBI
6 years, 11 months ago

No relaxation in new bad loan rules, indicates RBI

Live Mint  

Mumbai: The Reserve Bank of India seems to have ruled out relaxations in its new bad loan rules. The new bad loan rules stipulate that starting 1 March, lenders must implement a resolution plan within 180 days for loan accounts of at least Rs2,000 crore, failing which the defaulting borrowers must be referred to insolvency courts. “The Reserve Bank believes …

RBI’s revised NPA resolution framework long-term positive: Report
7 years, 1 month ago

RBI’s revised NPA resolution framework long-term positive: Report

India TV News  

The Reserve Bank's revised framework for quicker and time-bound resolution of stressed assets is a long-term positive for banks, says a report. "The streamlining of the NPA resolution process affords simplicity, timeliness and credibility, and is long-term positive for the banking sector," Krishnan Sitaraman, a senior director at Crisil, said in the report today. "By mandating weekly information on large …

Govt lauds RBI's stricter rules to tackle bad loans, says it is a wake up call for loan defaulters
7 years, 1 month ago

Govt lauds RBI's stricter rules to tackle bad loans, says it is a wake up call for loan defaulters

Firstpost  

New Delhi: In a bid to hasten the resolution of bad loans, RBI has tightened rules to make banks identify and tackle any non-payment of loan rapidly, a move the government said should act as a “wake up call” for defaulters. Under the new rules, insolvency proceedings would have to be initiated in case of a loan of Rs 2,000 …

RBI's new norms on bad loans wake up call for defaulters: Govt
7 years, 1 month ago

RBI's new norms on bad loans wake up call for defaulters: Govt

India TV News  

In a bid to hasten the resolution of bad loans, RBI has tightened rules to make banks identify and tackle any non-payment of loan rapidly, a move the government said should act as a "wake up call" for defaulters. Under the new rules, insolvency proceedings would have to be initiated in case of a loan of Rs 2,000 crore or …

RBI issues revised guidelines to deal with banks' bad loans
7 years, 1 month ago

RBI issues revised guidelines to deal with banks' bad loans

The Quint  

Mumbai, Feb 13 The Reserve Bank of India has brought out a revised framework for speedy resolution of non-performing assets, or bad loans, by harmonising existing guidelines with the norms specified in the Insolvency and Bankruptcy Code, 2016.In a notification issued late on Monday, the RBI said the new guidelines have specified a framework for early identification and reporting of …

RBI’s new rules on NPAs mean faster detection and better resolution
7 years, 1 month ago

RBI’s new rules on NPAs mean faster detection and better resolution

Op India  

Today, we are witnessing a large spurt in Non-Performing Assets i.e. Now, Banks are expected to classify stressed accounts as “Special Mention Accounts” as per the following timelines: Thus, as per the norms, if either principal or interest is overdue even partly, for even 1 day, the loan gets classified as SMA-0. This issue was recently seen in many private …

RBI withdraws SDR, S4A, sets banks 180-day timeline for bad loan resolution
7 years, 1 month ago

RBI withdraws SDR, S4A, sets banks 180-day timeline for bad loan resolution

Live Mint  

Mumbai: The Reserve Bank of India on Monday tightened norms for bad loan resolution by setting timelines for resolving large NPAs, failing which banks will have to mandatory refer them for insolvency proceedings. According to the new rules, for such accounts, where the banking sector’s aggregate exposure is Rs2,000 crore above, lenders must implement a resolution plan within 180 days, …

RBI may take up NPAs worth Rs 8L cr for resolution by March 2019: Assocham study
7 years, 8 months ago

RBI may take up NPAs worth Rs 8L cr for resolution by March 2019: Assocham study

India TV News  

Industry body Assocham on Sunday said the Banking Regulation Ordinance has empowered the Reserve Bank of India to take up "bad loans worth about Rs 8 lakh crore" for resolution by March 2019. "The government gave wide-ranging legislative powers to the RBI to issue directions to lenders to initiate insolvency proceedings for the recovery of bad loans that have reached …

NPA resolution: Banks may have to take 60% haircut on 12 large bad loan accounts, says Crisil
7 years, 9 months ago

NPA resolution: Banks may have to take 60% haircut on 12 large bad loan accounts, says Crisil

Firstpost  

The RBI over a fortnight back referred the 12 largest bad loans for resolution under the Insolvency and Bankruptcy Code 2016, which provides for these companies to be referred for liquidation. That would mean banks will have to increase provisioning by another 25 percent this fiscal, compared with nine percent in the last fiscal,” Crisil senior director Krishnan Sitaraman said. …

Resolve 55 bad loan cases in 6 months or face Insolvency and Bankruptcy Code, RBI tells banks
7 years, 9 months ago

Resolve 55 bad loan cases in 6 months or face Insolvency and Bankruptcy Code, RBI tells banks

Live Mint  

New Delhi: The Reserve Bank of India has asked banks to resolve 55 cases of bad loans within six months or face the Insolvency and Bankruptcy Code, as part of its strategy to rein in unacceptable level of non-performing assets in India’s banking sector. Earlier this month, RBI identified 12 accounts for insolvency proceedings with each of them having over …

RBI's move on NPA resolution credit-positive for banks, to improve overall asset quality: Moody's
7 years, 9 months ago

RBI's move on NPA resolution credit-positive for banks, to improve overall asset quality: Moody's

Firstpost  

The Reserve Bank of India move is credit-positive for banks because any meaningful resolution under this plan can help improve their overall asset quality Mumbai: Global credit rating agency Moody’s Investors Service on Monday dubbed as ‘credit-positive’ for Indian banks the RBI plans to resolve 12 large bank loan accounts accounting for 25 percent of the banking system’s non-performing assets. …

India's bankruptcy code process for creditors, defaulters
7 years, 9 months ago

India's bankruptcy code process for creditors, defaulters

Business Standard  

The Reserve Bank of India has identified 12 of the country's biggest loan defaulters and said creditors must pursue bankruptcy proceedings against them, as it begins to cut the $150 billion in stressed debt hobbling Asia's Number 3 economy. Outlined below are the steps lenders must now take in a process that could take six months to nine months: ** …

New NPA package for banks makes RBI more powerful; it's a move in the right direction
7 years, 10 months ago

New NPA package for banks makes RBI more powerful; it's a move in the right direction

Firstpost  

The resolution of the NPA issue is critical for the future of the banking system and hence any measure to resuscitate the same is always welcomed with enthusiasm. The recent Cabinet approval of the NPA package has hence been seen as a possible solution to this problem just as were the previous attempts involving various structures and schemes. Prima facie, …

Discover Related