The proposed bad bank or NARCL will pay up to 15% of the agreed value for the loans in cash and the remaining 85% would be government-guaranteed security receipts.
The bad bank was registered as the National Asset Reconstruction Company Ltd with Padmakumar Madhavan Nair as the MD. Its paid-up capital is Rs 746 million.
By housing bad loans of many lenders under one roof, the new entity should help speed up decision-making and improve bargaining power when resolving these assets.
In September 2019, RBI had placed PMC under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities.
Most banks have reported a smaller percentage of bad loans on their books in the last quarter. Here’s a look at the full extent of the problem in selected financiers.
NBFCs fund a wide range of businesses. Any setback would not bode well for an economy already heading for its worst annual contraction since the 1950s this financial year.
According to bankers, total debt recast will be around Rs 3 lakh crore. Shapoorji Pallonji, Future groups among firms to receive nod for recast, but may ultimately not need it.
SBI’s bad loan ratio fell to 5.28% in September end from 5.44% three months earlier, but the bank warned that it expects further $2.7 billion of loans to sour over next 6 months.
SBI, which posted a better than expected profit, estimates a further Rs 200 billion of loans to sour in the next 6 months as Covid continues to impact borrowers.
Assam CM can’t celebrate that the Congress drew a blank in the Bodoland Territorial Council polls in 2010 as well as 2015, and bagged only one in 2020.
SEBI probe concluded that purported loans and fund transfers were paid back in full and did not amount to deceptive market practices or unreported related party transactions.
The 2018 contract with Russia for 5 S-400 systems had a follow-on clause for 5 more. S-400 was described as a 'game-changer' for shooting down 5 Pakistan fighter jets during Op Sindoor.
What Munir has achieved with Trump is a return to normal, ironing out the post-Abbottabad crease. The White House picture gives us insight into how Pakistan survives, occasionally thrives and thinks.
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