Yes Bank’s Ranveet Gill did what was expected of the bank’s first non-founder CEO: eliminating all uncomfortable elements in the way.
The worst seems to be over for India’s banking sector, which undertook a ‘deep surgery’ on bad loans stretching about 36 months.
RBI to come out with fresh circular on resolution of bad loans: Central bank Governor Shaktikanta Das
The Supreme Court Tuesday quashed the RBI circular of last year that pertains to the provisions for referring the defaulter to the NCLT even on a one-day overdue.
RBI circular said, the moment a commercial entity is in default on a loan of Rs 2,000 crore or more even for a day, the bank would initiate steps for resolving, including restructuring the loans.
An RBI report shows fresh addition to the NPAs has declined with most cases being settled outside the National Company Law Tribunal.
The state-run bank has made recoveries worth Rs 16,600 crore from bad loans this fiscal year.
According to Malappuram District Cooperative Bank DGM Saramol C M, gold loans generally witness low NPAs as it is more liquid and price realisation is far easier.
As per the analysis, the difference in bad loan reporting also resulted in a variation in provisioning among banks and profits.
State-run banks have reduced a staggering Rs 2.22 lakh crore from their NPA tallies as loan recovery efforts paid off in the last three and half years, shows latest data.
The Basel III norms recommend risk-weights for various credit exposures, based on cumulative default rates (CDR) and recovery rates observed internationally.
The 19 nationalised banks, including PNB and Canara Bank, reported a net loss of Rs 21,388 crore in the first half of the fiscal.
'The reduction is due to two reasons — improved provisioning and write-offs and increasing recoveries,' Anil Gupta, Head of financial sector ratings, ICRA told Express.
In an exhaustive 66-page order, the panel pulled up the Prime Minister's Office for not complying with its directive to disclose the letter from former RBI Governor Rajan on 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.