Foreclosure India Blog

FinMin, PSB chiefs to discuss NPAs in review meet ahead of interim budget
Posted in News on Jan 23, 2019

The finance ministry’s review meeting with the chief executives of public sector banks (PSBs), ahead of the Interim Budget 2019-20, will focus on ways to reduce non-performing assets (NPAs) and boost their recovery, especially by auctioning borrowers’ properties.

Financial Services Secretary Rajiv Kumar is set to chair the meeting slated to be held on January 28, instead of January 22 as was planned earlier.

“The meeting will be focussed on NPAs. We will discuss the steps being taken by banks to reduce and recover bad loans,” a senior finance ministry official said, requesting anonymity. “The ...

After BoI, 9 other banks under RBI scanner for ‘corrective action’
Posted in News on Dec 23, 2017

Total gross NPAs in value terms of the entire banking system stood at Rs 8.38 lakh crore as on September 2017, and these ten banks together account for 34% of these total value.

NPA issue: Can IBC help govt, RBI to deal with the problem?
Posted in News on Dec 23, 2017

RBI is also identifying wilful defaulters for IBC resolution under the National Company Law Tribunal (NCLT). So far, it has identified 40 wilful defaulters of banks in two lists.

Dhir & Dhir acts on first management take-over under SARFAESI
Posted in News on Nov 18, 2017

Amid all the hype and popularity of taking over the management of the affairs of the Corporate Debtor under the Insolvency And Bankruptcy Code, 2016 (IBC), a NAVRATNA enterprise has become the first company in India to take over management of a debtor under provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI).

PSU banks wrote off Rs2.49 trillion of loans in 5 years: Finance ministry
Posted in News on Nov 18, 2017

As many as 27 public sector banks, including SBI and its five associates, in 2016-17 have written off Rs81,683 crore, 41% higher than the previous fiscal

Advantages of buying properties through Bank Auction
Posted in Articles on Nov 18, 2017

Here are just a few of the reasons that homeowners and investors are going to the Bank Auctions / foreclosure market.

SC upholds changes in Sarfaesi Act; banks free to decide NPAs
Posted in News on Oct 28, 2017

Dismissing appeals filed by around 60 companies, the Supreme Court on Wednesday upheld the amendment to the Securitisation Act that gave power to every financial institution to decide a period after which a bad loan can be declared as a non-performing asset (NPA). Before the 2004 amendment to the Securitisation Act and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (Sarfaesi Act), RBI was the regulator for the banking, non-banking and securitisation institutions for deciding the period after which loans could be treated as NPA. Till 2004, RBI had set the NPA period for banks at 90 days and at 180 days for NBFCs.

Amendment in SARFAESI Act on NPA constitutionally valid: Supreme Court
Posted in Articles on Oct 28, 2017

NEW DELHI: Supreme Court today upheld the constitutional validity of an amendment in the provision of the securitisation law which authorises the creditor to classify the account of a borrower as Non Performing Assets (NPA) in accordance with RBI guidelines and directions. The apex court passed the judgement while dealing with the amended definition of the expression ‘NPA’ under Section 2(1)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Checklist for action under SARFAESI Act
Posted in Articles on Oct 28, 2017

Sri C P S Rama Chary garu, Practiced law in City Civil Courts, Industrial Tribunal & High Court of AP for about 9 1/2 years. Served in Law Department of Andhra Bank for about 23 years. Retired Presiding Officer ( DRT3 at Chennai ). Sl.N. STAGE WISE ACTION SUGGESTION/ADVISE 1 Sarfaesi Act poroceeds on the basis that borrower created security interest in favour of bank and his liability stood crystalised on account of his default and his account is classified as NPA Sec.13(2): Where any borrower, who is under a liability to a secured creditor under a security agreement, makes any defau...

Quick loan recovery hope for NBFCs
Posted in News on Oct 28, 2017

Calcutta, March 8: Non-bank finance companies (NBFCs) have welcomed the Centre’s decision to allow access to the Sarfaesi Act, which facilitates the recovery of non-performing assets without court intervention. Sarfaesi, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, enables banks to expedite recovery and improve credit behaviour. The NBFCs registered with the RBI and having an asset size of Rs 500 crore and above (considered as systemically important) will be eligible to access the provisions of the act.