- Tag results for bad loans
There are an estimated 200 large NPA accounts in various PSU banks with a total exposure of `3 lakh crore.
If not in this board meeting, sources said, the issue of relaxation of PCA framework which the finance ministry has been pitching for would be reached in the next few weeks.
The bank saw a total business growth of 14.28 per cent which amounted to a profit of around four lakh crores.
The standoff was in relation to RBI's handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector.
India's banks have been plagued by a surge in non-performing loans which hit a record $150 billion at the end of March.
Congress President Rahul Gandhi used the report to attack the government, saying demonetisation converted black money into white and Rs 3.16 lakh crore of loans were written off.
Amid mounting bad loans plaguing the banking system, the State Bank of India (SBI) has set up an intermediary mechanism to review sectors of exposure.
The official said over 60 lakh cheque bounce cases are pending in the country and HDFC Bank has taken a lead by requesting the courts to use digital means to issue summons.
After Raghuram Rajan's letter on bad loans, Modi government set to review all fraud complaints received
The top banker’s missive gave Opposition a chance to attack Prime Minister Narendra Modi, saying that PMO sat on the letter and took no action.
The public sector lender had put three NPA accounts for sale in April this fiscal and another three accounts in July with collective dues of more than Rs 350 crore.
Banks may need to take a haircut of 40-60 per cent on loan defaults to facilitate better rating to implement a resolution plan, reveals a joint study.
The comments had the Congress and the BJP locked in a slugfest with both parties defending the economic policies of their respective governments.
The stay came exactly on the last day for bankers to refer unresolved NPA cases to the insolvency court.
Rajan also made a case for strengthening the recovery process and distance public sector banks from the government.
The senior Congress leader also questioned why the present dispensation did not recall those loans, given by the previous government, which turned bad.