According to ICRA, the list has accounts from diverse sectors and a total exposure of about Rs 1.15 lakh crore.
State Ban of India has an exposure of Rs 26,636 crore to 27 of about 30 such accounts listed by the Reserve Bank of India (RBI).
Wilful defaulters or people who have diverted funds, as proved in the forensic audit, will not be allowed to participate in bidding for stressed companies, the SBI chairman said.
The focus should not be lost on recovering bad loans by allowing the banks to write them off, says AIBEA.
HDFC Bank reported a 22 per cent increase in net interest income year-on-year to Rs 9,752 crore, ahead of analysts' estimates.
The banking sector fears accretion of more than Rs 40,000 crore of bad loans to its books following recent classification of eight consortium accounts of Axis Bank as NPAs by RBI.
In case of net NPAs by this period, the divergence is of Rs 4,755.60 crore. The lender had reported net NPAs worth Rs 14,643.39 crore as against RBI’s estimate of Rs 19,398.99 crore.
The RBI has reportedly told banks to set aside at least 50 pc of the loan amount as likely losses for all cases referred to the insolvency process
IDBI Bank's decision to recover its dues by taking the resolution to insolvency courts sent Lanco Infratech stocks tumbling 20 per cent
The rating agency said it expects that the effectiveness of the resolutions under the Insolvency and Bankruptcy Code (IBC), 2016, will be limited.
The 12 defaulters accounting for 25 per cent of total bad debt include Essar Steel, Bhusan Power and Steel, Alok Industries, Amtek Auto, Monnet Ispat, Lanco Infra, Electrosteel Steels, Era Infra, Jaypee Infratech, ABG Shipyard, and Jyoti Structures
The Reserve Bank's measure comes a day after Finance Minister Arun Jaitley reviewed the performance of Public Sector Banks in India
A new trend is catching up fast in India’s agriculture sector where farmers deliberately default on their dues to financial institutions, in hopes that the government will waive their loans sooner or later
Finance Minister Arun Jaitley said that the RBI is in the final stages of drawing up a list of bad loans that can be settled under the new insolvency law and that action in this regard will be visible soon
The Finance Minister pointed out that a few top bankers expressed apprehensions about the infrastructure available for enforcement under the NPA ordinance. He, however, did not go into the specifics.
According to a report issued by Moody’s, capital infusion from the government will be the only viable source of external equity capital for state-owned banks, given their low equity valuations
The loans under scanner include those that have either become Non Performing Assets (NPAs) or those restructured as of December 2016
Domestic rating agency India Ratings and Research today said around 35 per cent of Rs 7.7 lakh crore loans may slip into the NPA category in the next 12-18 months.
Jaitley, who is in Japan, said that the government was already re-assessing recapitalisation requirement of the banks.
The ordinance to deal with the banking sector's non-performing loans and the amendment to the Banking Act received President Pranab Mukherjee’s approval on Friday.
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