- S Africa widens hunt for Zuma allies to India, China
- India best placed to leverage technology: PM
- DMK to convene 'all-party' meet on Cauvery issue
- Pak charges Rs 2.86L as route navigation charges on PM flights
- Mentally challenged person shot dead near J&K Air Force station
- FIR against Rotomac promoter for Rs 800 cr bank fraud: CBI
- PNB fraud fallout: CBI seals Brady House Branch in Mumbai
Vinod Rai writes to FM, PMO on bad loans, suggests roadmap
Expressing concerns over mounting bad loans, Banks Board Bureau (BBB) Chief Vinod Rai has written to Finance Minister Arun Jaitley and Prime Minister’s Office underlining the tardy progress made by state-owned lenders in resolving the issue of Non Performing Assets.
The former CAG, in a letter marked to Principal Secretary to Prime Minister Nripendra Misra, has also suggested a roadmap to wriggle out of the NPA problem being faced mainly by public sector banks (PSBs), official sources said.
The letter, they said, has suggested expansion of ambit of Oversight Committee to provide guidance under other available mechanisms, including deep restructuring, Joint Lenders Forum (JLR) and Strategic Debt Restructuring (SDR).
Bad loans of PSBs rose by about Rs 1 lakh crore during the April-December period of 2016-17, the bulk of which are accounted for by the infrastructure sector -- power, steel, roads -- and textiles.
Jaitley last week held a high level meeting with senior officials, RBI Governor Urjit Patel and two deputy governors S S Mundra and Viral V Acharya to deliberate on the ways to resolve stressed assets in the banking sector.
Gross NPAs of public sector banks increased to Rs 6,06,911 crore while total stressed assets (gross non-performing assets and restructured standard advances) of scheduled commercial banks were Rs 9.64 lakh crore as on December 31, 2016.
As of September-end, the banks’ total stressed loans were Rs 8,97,000 crore. This is a 7.5 per cent growth in stressed loans from September to December-end.
Earlier this week, Jaitley had said the RBI has set up an Oversight Committee to look into process of the cases referred to it by the different banks.
“Seeing the response and its performance, the Government is considering multiplication of such committees,” he had said.
BBB was set up as an advisory body by the Government last year to recommend on the appointment of directors at PSBs and advise on ways to raise funds and merger and acquisitions to the lenders among other things.
Last year, the Government expanded its role to also help banks in their capital raising plans and develop business strategies.
As part of its extended role, the board was entrusted with the task of advising the Government on extension of tenure or termination of services of the board of directors in state-run banks and financial institutions.
- Tata Steel, JSW-Piramal JV bid for Bhushan Steel, resolution begins 20 Feb 2018 | PNS
- Telecom relief package likely in March: Govt 20 Feb 2018 | PNS
- Regulatory changes may delay KG block output: ONGC 20 Feb 2018 | PNS
- Business Corner 20 Feb 2018 | PNS
- SFIO to probe Fortis, Religare for irregularities 20 Feb 2018 | PNS
- PNB tanks over 7% 20 Feb 2018 | PNS
- PNB scam impact: Bank stocks tumble; Sensex dives 236 pts 20 Feb 2018 | PNS
- PNB assures will honour bonafide commitments 20 Feb 2018 | PNS
- United India Insurance's net profit at `306.27 cr during April-Dec last year 19 Feb 2018 | PNS
- FPIs' net outflow from equities hits $1 bn so far in February 19 Feb 2018 | PTI
Sunday EditionView All
18 Feb 2018 | Gwynne Dyer
Now that Jacob Zuma has finally exited, the African National Congress, which has fallen a long way from its glory days, has one last chance to rebuild its reputation before next year’s election. Whether the ANC is the best bet for South Africans is a different question altogether As a passer-by in the upscale Johannesburg suburb of Saxonwold observed, the South African Police would never have raided the enormous, high-walled compound...
STATE EDITIONSView All
20 Feb 2018 | Staff Reporter | Bhopal
Patidar Anamat Andolan Samiti (PAAS) leader Hardik Patel on Monday said that the fight in Madhya Pradesh is not between BJP and Congress but the ruling party against the citizens. Before participating in the Samajik Chetna rally, talking to media persons here on Monday, Patel said, “Chief Minister in Madhya Pradesh is called Mama (uncle) but we don’t want a Shakuni Mama...