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Govt tells banks to focus on cash recovery

At present, much of their loan recovery happens in written-off accounts

The government has asked public sector to focus on cash recoveries. At present, much of their loan recovery happens in written-off accounts.

from written-off accounts help refurbish banks’ equity capital base. Cash and upgradation of live non-performing assets, on the other hand, require to contain slippages.  

The ministry in a communication to public sector bank chiefs said recovery efforts should be stepped up to match, and eventually, overtake the growth of gross non-performing assets. The gross of public sector rose from Rs 5.02 lakh crore in March 2016 to Rs 5.59 lakh crore in June 2016.

executives said work on from both streams, written-off accounts and live NPAs, had gathered steam in the previous two quarters. The focus on getting money back from stressed accounts is visible from the "war rooms" opened at Delhi-based and Mumbai-based Dena Bank.

Karthink Srinivasan, co-head of financial sector ratings at ICRA, said had improved from mid-sized corporates and households but large corporates, mostly consortium accounts where many had exposure, remained a weak spot. The total reduction in — cash recovery, upgradation and write-offs — during the first quarter of 2016-17 by PSBs was Rs 45,615 crore against Rs 27,398 crore in the same period a year ago. Within this, written-off assets stood at Rs 14,954 crore in the first quarter of 2016-17 against Rs 11,277 crore in the same period a year ago. Fresh slippages were Rs 99,609 crore in the first quarter of 2016-17 against Rs 45,252 crore in the same period a year ago.

An executive with a Mumbai-based public sector bank said while the economy was showing signs of recovery, most highly leveraged corporates still continued to face stress.

Govt tells banks to focus on cash recovery
The complex dynamics of the joint lenders’ forum also slowed down the pace of action against borrowers, he added.

The undertook an asset quality review in 2015-16 to ensure were taking proactive steps to clean up their balance sheets. Weak loans were identified and the themselves took this further by identifying other weak accounts that were not part of the exercise.

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Business Standard
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Business Standard

Govt tells banks to focus on cash recovery

At present, much of their loan recovery happens in written-off accounts

Abhijit Lele  |  Mumbai 

Govt tells banks to focus on cash recovery

The government has asked public sector to focus on cash recoveries. At present, much of their loan recovery happens in written-off accounts.

from written-off accounts help refurbish banks’ equity capital base. Cash and upgradation of live non-performing assets, on the other hand, require to contain slippages.  


The ministry in a communication to public sector bank chiefs said recovery efforts should be stepped up to match, and eventually, overtake the growth of gross non-performing assets. The gross of public sector rose from Rs 5.02 lakh crore in March 2016 to Rs 5.59 lakh crore in June 2016.

executives said work on from both streams, written-off accounts and live NPAs, had gathered steam in the previous two quarters. The focus on getting money back from stressed accounts is visible from the "war rooms" opened at Delhi-based and Mumbai-based Dena Bank.

Karthink Srinivasan, co-head of financial sector ratings at ICRA, said had improved from mid-sized corporates and households but large corporates, mostly consortium accounts where many had exposure, remained a weak spot. The total reduction in — cash recovery, upgradation and write-offs — during the first quarter of 2016-17 by PSBs was Rs 45,615 crore against Rs 27,398 crore in the same period a year ago. Within this, written-off assets stood at Rs 14,954 crore in the first quarter of 2016-17 against Rs 11,277 crore in the same period a year ago. Fresh slippages were Rs 99,609 crore in the first quarter of 2016-17 against Rs 45,252 crore in the same period a year ago.

An executive with a Mumbai-based public sector bank said while the economy was showing signs of recovery, most highly leveraged corporates still continued to face stress.

Govt tells banks to focus on cash recovery
The complex dynamics of the joint lenders’ forum also slowed down the pace of action against borrowers, he added.

The undertook an asset quality review in 2015-16 to ensure were taking proactive steps to clean up their balance sheets. Weak loans were identified and the themselves took this further by identifying other weak accounts that were not part of the exercise.

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Govt tells banks to focus on cash recovery

At present, much of their loan recovery happens in written-off accounts

At present, much of their loan recovery happens in written-off accounts
The government has asked public sector to focus on cash recoveries. At present, much of their loan recovery happens in written-off accounts.

from written-off accounts help refurbish banks’ equity capital base. Cash and upgradation of live non-performing assets, on the other hand, require to contain slippages.  

The ministry in a communication to public sector bank chiefs said recovery efforts should be stepped up to match, and eventually, overtake the growth of gross non-performing assets. The gross of public sector rose from Rs 5.02 lakh crore in March 2016 to Rs 5.59 lakh crore in June 2016.

executives said work on from both streams, written-off accounts and live NPAs, had gathered steam in the previous two quarters. The focus on getting money back from stressed accounts is visible from the "war rooms" opened at Delhi-based and Mumbai-based Dena Bank.

Karthink Srinivasan, co-head of financial sector ratings at ICRA, said had improved from mid-sized corporates and households but large corporates, mostly consortium accounts where many had exposure, remained a weak spot. The total reduction in — cash recovery, upgradation and write-offs — during the first quarter of 2016-17 by PSBs was Rs 45,615 crore against Rs 27,398 crore in the same period a year ago. Within this, written-off assets stood at Rs 14,954 crore in the first quarter of 2016-17 against Rs 11,277 crore in the same period a year ago. Fresh slippages were Rs 99,609 crore in the first quarter of 2016-17 against Rs 45,252 crore in the same period a year ago.

An executive with a Mumbai-based public sector bank said while the economy was showing signs of recovery, most highly leveraged corporates still continued to face stress.

Govt tells banks to focus on cash recovery
The complex dynamics of the joint lenders’ forum also slowed down the pace of action against borrowers, he added.

The undertook an asset quality review in 2015-16 to ensure were taking proactive steps to clean up their balance sheets. Weak loans were identified and the themselves took this further by identifying other weak accounts that were not part of the exercise.
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