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.
Meghnad’s interest went much beyond economics and politics. This is reflected in his writing, particularly after his retirement as a full-time LSE professor in 2003.
In the latest budget, the FDI limit was increased to 100 percent, but most foreign companies are not buying such large stakes in the Indian insurance sector.
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