Foreclosure India Blog

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

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.

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.

Rs 1.14 lakh crore of bad debts: The great government bank write-off.
Posted in News on Oct 28, 2017

That is the amount of bad loans waived in last three financial years, more than the write-off in the previous nine. Twenty-nine state-owned banks wrote off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015, much more than they had done in the preceding nine years

Bad loans: 5 things Rs 1.14 lakh crore can do to get India shining
Posted in News on Oct 28, 2017

India’s 29 state-owned banks have written off a total of Rs 1.14 lakh crore between 2012-13 and 2014-15, a sum large enough to build more than 10,000 km of highways. The Indian Express reported on Monday that “twenty-nine state-owned banks wrote off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015, much more than they had done in the preceding nine years.”

Finance ministry drafts incentive scheme for asset reconstruction companies to reduce junk assets
Posted in News on Oct 28, 2017

MUMBAI:The government has thrown new rules at state-owned banks, nudging them to salvage their junk loans, which have strained balance sheets and re-priced stocks of several lenders.The finance ministry, concerned that a mountain of loss assets could call for bigger fund infusion into banks, has stepped in as the junk loan market has been at a standstill since last year.

Sarfaesi provisions can help resolve NPAs of NBFCs faster: Icra report
Posted in News on Oct 28, 2017

Report said the move is credit-positive for NBFCs with a retail focus, especially those which are in the mortgage space. Domestic rating agency Icra has said the decision to extend provisions of the Sarfaesi Act to loans given by non-banking finance companies will help bring down delinquencies and may result in cheaper funds for borrowers. “The access to the Sarfaesi Act will strengthen NBFCs’ ability to contain life-time losses,” the rating agency said in a weekend note after the finance ministry decided recently to extend the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act 2002 to non-banking financial companies (NBFCs) with over Rs 500 crore in assets.