Bank Defaulters

Opposition members in Rajya Sabha on Wednesday accused the government of writing off crores of rupees owed by wilful defaulters who have fled the country while crushing banks under the burden of non-performing assets. Participating in the discussion on the Banking Laws (Amendment) Bill, 2024 in the Upper House, Shaktisinh Gohil (Congress) said the government has written off Rs 87,000 crore owed by 50 wilful defaulters till 2024 citing official data. "People, including Mehul Chokshi and Rishi Agarwal are in the list of those wilful defaulters. The government has written off loans to those people who looted this country and fled abroad. But when poor, small traders and farmers default on loans the government auctions their assets," he said. Expressing similar views, Saket Gokhale (TMC) said by the government's own admission, consumption is down in the economy and people are not taking loans to buy any new products or to consume something new but they are taking loans to service their

In July 2023, MTNL raised Rs 2,480 crore ($296.97 million) through 10-year government-guaranteed bonds at a semi-annual coupon of 7.59 per cent and the interest payment is due on July 20

The Bombay High Court has said banks and financial institutions should pass reasoned orders before declaring an entity or person a wilful defaulter under the Reserve Bank of India's Master Circular. A division bench of Justices B P Colabawalla and Somasekhar Sundaresan, in its order on March 4, noted that wilful defaulters are ostracized from access to the financial sector and hence, the discretion given to banks under the circular should be exercised with caution as mandated by the RBI. "Banks and financial institutions that seek to invoke the Master Circular to declare occurrence of wilful default, must share the reasoned orders passed by its Identification Committee and Review Committee," the HC said. The bench was hearing a petition filed by Milind Patel, former joint managing director of IL&FS Financial Services Limited (IFIN), challenging an order passed by the Union Bank of India in February 2023 declaring the firm and its promoters wilful defaulters under the 2015 Master ..

The Delhi High Court on Wednesday reserved the order on the default bail plea moved by the Supertech Chairman RK Arora plea in a money laundering case

The regulator proposed that non-banking finance companies (NBFCs) should also be allowed to tag accounts using the same parameters

Move underscores Centre's resolve to ensure compliance with subsidy norms and protect interests of consumers

Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to take swift action in cases concerning fraud and wilful defaults to reduce bad loans and take steps to accelerate growth momentum, sources said. Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till the financial year 2021-22. The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off. In a recent meeting with heads of PSBs, the finance minister urged them to focus on having robust risk management practices and mitigating Cyber Security risks. During the meeting, it was also emphasised that banks should follow a strong internal audit framework and adherence to caveats of internal policies, sources said. Some of the challenges highlighted during the meeting included the declining share of market share in terms of advanc

Banks typically calculate the net present value (NPV) of the security and compare it with the settlement amount, which is mostly in cash

Nazara Technologies on Wednesday said that out of Rs 64 crore held by its two step down subsidiaries in Silicon Valley Bank, Rs 60 crore has been successfully transferred to bank accounts outside of SVB. The balance Rs 4 crore remains in SVB accounts for unrestricted operational use, the company said in a regulatory filing. Nazara informed that both the companies -- Kiddopia Inc and Mediawrkz Inc -- have been given unrestricted access to the entire amount of USD 7.75 million (Rs 64 crore) that was held at SVB. "From this amount, a sum of USD 7.25 million (Rs 60 crore) has been transferred to bank accounts outside of SVB and the balance amount of USD 0.5 million (Rs 4 crore) remains in SVB accounts for unrestricted operational use," the company said.

Yet to receive notice from NCLT, firm says; HFDC, IndusInd Bank had filed petitions earlier

Carbon Resources has offered an upfront payment of Rs 1,245 crore of an estimated outstanding bank debt of Rs 1,650 crore

This trend is expected to persist until the Sri Lanka's external situation stabilises, which may take time, S&P said in a statement

Banks are required to take steps to initiate the legal process, wherever warranted, against the borrowers or guarantors for recovery dues, she said.

A special court in Mumbai has said the banks that had granted loans to fugitive liquor baron Vijay Mallya, have suffured losses

Borrowers must recommence regular repayments and ensure that they do not default on their loan obligations

Earlier, ICRA had forecast credit growth for banks at 6-7 per cent

Govt appoints four more members; norms in 30 days after recommendations

Plea in SC claimed around Rs 1,900 crore are lost every day due to PSBs not invoking personal guarantees of big corporate loan defaulters.

Forty-two years later, Setty continues to collect on loans, albeit on a much larger scale.

In notes to its consolidated results for FY20, the list of debt on which it has defaulted, or has delayed payments, includes 33 different lenders and non-convertible debenture (NCD) series.