"The standard restructured accounts stood in the range of Rs 1.8-1.9 lakh crore as on March 31, 2017, and the incremental provisioning requirement for banks would be in the range of Rs 40,000-50,000 crore for FY19", the ratings agency said. "Lenders shall continue to pursue such cases as per the earlier instructions", the RBI said. Further, in the event the banks are unable to implement a resolution plans for the large borrowers with exposure of Rs 2,000 crore and above, these accounts will required to referred to National Company Law Tribunal for resolution under Insolvency and Bankruptcy Code (IBC), 2016. As soon as there is a default in the borrower entity's account with any lender, all lenders - singly or jointly - shall initiate steps.
The first such weekly report shall be submitted for the week ending February 23, 2018.
Manish Aggarwal, Partner and Head-Resolutions, Special Situations Group, KPMG in India, said: "This (revised framework) also provides a window to many borrowers to work towards a "win-win" resolution plan by working with the lenders.However, one also needs to factor in genuine business cycles, economic cycles which may lead to delays in payments cycle". Banks are already bleeding due to the systemic clean- up of their books undertaken by RBI over the past three years and the newer accounting system may only aggravate the pains. "The RP shall be clearly documented by all the lenders (even if there is no change in any terms and conditions)".
It will also be hard for bankers to push loans into various types of restructuring schemes so that non-performing asset tag can be avoided. The accounts can be upgraded if the borrower has demonstrated a track record of timely debt repayments and has paid at least 20% of the principal outstanding at the time of resolution plan, subject to a minimum investment grade credit rating from a rating firm.
Funeral arrangements made for two slain OH police officers
Officials said Sunday that suspect, Quentin Smith, was hospitalized in stable condition and is expected to survive. However, there is much more to the campaign than giving well-deserved support to our fearless police officers.
For those accounts where the lenders' aggregate exposure is at Rs 100 crore or more, but less than Rs 2,000 crore, RBI plans to announce over a two-year period, reference dates for implementing resolution plan to ensure time-bound resolution of such accounts in default.
If in default as on the reference date, then 180 days from the reference date.
The spike in NPAs is likely to be an outcome of implementation of resolution plan for large borrowers that are now under Special Mention Accounts (SMA) categories.
Kumar said the RBI's decision would not have much impact on the provisioning norms for banks.
Four FC personnel martyred in firing on Quetta's Sariab Road
The bodies of the deceased, whose institutional identity is yet to be ascertained, were shifted to Civil Hospital. Muazzam Jah, inspector general of Balochistan police, said there was no CCTV camera in the area of the attack.
The apex bank has warned that any failure on the part of banks to meet the prescribed timelines, or any actions they take to hide the actual status of accounts or evergreen stressed accounts, will expose banks to potential monetary penalties and other actions.
Some of these accounts are already classified as NPAs and may not add to the overall stock of NPAs.
The apex bank in a dramatic move on Monday had discontinued programmes for banks to restructure their defaulted loans such as corporate debt restructuring (CDR), sustainable structuring of stressed assets (S4A), strategic debt restructuring (SDR), among others, and made the Insolvency and Bankruptcy Code as the main tool to deal with defaulters.
The revised framework has paved way for a more holistic and concerted effort for effective and faster resolution with stipulated timeline.
US Ladies Beat Russia, Safe Spot in Ice Hockey Semifinals
USA coach Robb Stauber rotated his goalies, putting Hensley in net after playing Maddie Rooney in a 3-1 opening win over Finland. Lamoureux-Davidson also added an assist for a three-point game and leads the team with four points in the tournament.