Stressed assets News

The Supreme Court had earlier quashed the RBI circular on stressed loan recognition and resolution of large borrowers over Rs 2,000 crore.

The new guidelines have specified framework for early identification and reporting of stressed assets.

The overall trends on Special Mention Accounts (SMAs) portfolio is on a decline.

Modi had launched a blistering attack on Congress over bank NPAs The biggest scam and increase of NPAs has happened in 3 and a half years of BJP Government, Congress said Congress accused EC of becoming a "puppet" in the hands of PM

RBI Deputy Governor S S Mundra has said public sector banks may require more than the budgeted Rs 10,000 crore capital infusion from the government in the current fiscal on account of higher provisioning for bad loans and haircut on stressed assets.

The Prime Minister's Office has called a meeting of senior officials of the ministries of finance and corporate affairs on Monday to review the progress in resolution of NPAs in the light of recent action taken by the Reserve Bank on stressed assets.

RBI Deputy Governor S S Mundra on Friday said public sector banks may require more than Rs 10,000 crore capital infusion from the government than budgeted for the current fiscal on account of higher provisioning for bad loans and haircut on stressed assets.

Reform measures undertaken by India will broaden its tax base and help government cut down on debt, but high stressed assets in the banking sector pose contingent liability risks.

The meeting, which will also be attended by Financial Services Secretary Anjuly Chib Duggal, will discuss ways of resolution of stressed assets urgently.

BBB will also decide on filling board-level vacancies in various banks.

The maiden meeting of the newly-constituted Bank Board Bureau (BBB) on Friday discussed board-level vacancies as well as recognising stressed assets and resolving issues around them.

Issuing the directive to heads of PSBs, the Finance Ministry regretted that they seldom recover loan from guarantors in case of loan default by companies

RBI is looking into a provision it introduced in June to help lenders managed stressed assets.

Country's biggest lender State Bank of India (SBI) on Friday said stressed assets in the system are likely to see a decline due to reforms in power distribution companies and pick up in rural power demand.

At the peak of project delays during the previous regime, due to lack of fuel linkages and green clearances, Tata Power had gone public.

To effectively deal with the problem of bad loans, SBI is in the process of introducing a system of early warning signals to detect NPAs and take corrective action.