Page 11 - Bad Loans

Centre to frame scheme to waive moratorium interest; SC to hear case today

Waiver may cost Centre Rs 5,000-7,000 crore

Left out in the cold: With no support, NBFCs likely to be in a bind

Non-banking financial companies may well face a second wave of liquidity problems after the loan moratorium is lifted, writes Raghu Mohan

Troubled debt: Cracks emerge in India Inc's loan recast plans over ICAs

Private banks may prefer to make extra 20% provisioning and walk out

Lenders want govt to offer moratorium interest relief to borrowers

Waiver may cost banks Rs 10,000 cr, says IBA

Govt seeks parliamentary approval for additional Rs 1.67 trn expenditure

The additional requirement includes Rs 40,000 cr for works under MGNREGA and Rs 20,000 cr for bank recapitalisation

Resolving stressed assets

The new package should not be used to kick the can down the road

SC protects loans not declared NPAs till Aug 31 from such action for now

The Supreme Court Bench said if a loan account had not been declared bad as of the end of August, it should not be classified as NPA till the moratorium case was disposed of

Govt must heed Urjit Patel's warning on NPAs, come up with policy response

The former RBI governor has served a warning on the intractable problem of bad loans

China's battered banks brace for future loss as bad loans rise due to Covid

As the pandemic batters economies globally, BoC, the most international of China's large state banks, said it would keep guarding against global financial market risks in the second half

HDFC Bank bad loan ratio may widen to decade high, says CEO-designate

The bad-loan ratio might widen to 1.4% to 2%, which will be close to the highest level since the global financial crisis, Sashidhar Jagdishan said in a conference call with analysts on Friday

Indian PSBs face fresh capital shortages as coronavirus bites: Moody's

Uncertainty surrounding India's economic recovery and the ongoing clean-up of balance sheets are making it difficult for banks to raise equity capital from markets, it says

Efforts to cut bad loans to come out of PCA framework: Indian Overseas Bank

IOB, which is under the Reserve Bank of India's PCA framework, had last posted profit in June 2016

Banking crisis could dent investor confidence

But bear in mind that the government will surely organise a bailout in such a scenario

Exxon loses $1 bn in second quarter as oil use dries up amid lockdown

The Irving, Texas-based oil giant brought in $32.6 billion in revenue during the second quarter, less than half of what it brought in at the same time last year

UCO Bank Q1 net profit at Rs 21.5 crore on lower bad loan provisions

Public sector UCO Bank on Friday posted a net profit of Rs 21.46 crore in the first quarter ended June 2020 on lower bad loan provisions.

Bank recapitalisation is a must

We need to be clear about what 'recovery' means

Promoters of loan defaulting companies to soon face crackdown by lenders

With apex court's backing, banks to speed up enforcing personal guarantees

Why don't PSBs invoke personal guarantees? SC questions govt on bad loans

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.

Bankers divided on extending moratorium, fear potential spike in bad loans

Without regulatory intervention, slippages could surge 300 bps

HDFC Bank's Q1 provides some relief to investors despite higher bad loans

Notably, 97-98 per cent of the customers under moratorium have no overdue and have received their salary, indicating no major concern