Page 12 - Bank Loans
Banks explore option of invoking personal guarantee of promoters, says SC
Armed with Supreme Court order, banks may invoke personal guarantees of tycoons ranging from Venugopal Dhoot to Kapil Wadhawan to recover unpaid loans from their delinquent firms, sources said Monday. According to an estimate, top 10 personal guarantors have guaranteed debt of over Rs 1.6 lakh crore. Among the big names, former promoters of Bhushan Steel and Power Sanjay Singhal and his wife Aarti Singhal had furnished personal guarantees worth up to Rs 24,550 crore to take loans from a consortium of bank led by State Bank of India (SBI). The former promoter of Reliance Communications, Anil Ambani, has also given personal guarantee against the loan taken. Erstwhile promoter Wadhawan stands guarantee to loans taken by DHFL, which is sitting on debt of about Rs 90,000 crore, while Dhoot has also given personal guarantee to a portion of Rs 22,000 crore loan to Videocon. The Supreme Court in May had held that the November 15, 2019 government notification allowing creditors, usually ...
 "Banks explore option of invoking personal guarantee of promoters, says SC")
Restructured loans of non-bank financials to double by March: ICRA
The pandemic and the curbs imposed to contain its spread have affected the cash flow of borrowers and prolonged the recovery process, according rating agency ICRA
 "Restructured loans of non-bank financials to double by March: ICRA")
Status check: Banks are yet to build up a robust 'Covid loan book'
The RBI came up with the scheme on May 7, mainly for the health sector. It subsequently increased the amount to include contact intensive sectors to ease the hardship
 "Status check: Banks are yet to build up a robust 'Covid loan book'")
Debt cut strategies useful for borrowers but they come at a cost
Loan restructuring and moratorium increase interest outgo
 "Debt cut strategies useful for borrowers but they come at a cost")
Cash-strapped Pak inks agreement with Saudi Arabia bank to borrow $4.5 bn
A debt-ridden Pakistan has signed an agreement with Saudi Arabia-based Islamic Development Bank (IDB) to borrow $4.5 billion to alleviate oil and gas shortages
 "Cash-strapped Pak inks agreement with Saudi Arabia bank to borrow $4.5 bn")
Valuation of SBI, subsidiaries can be better: Chairman Dinesh Kumar Khara
The early numbers indicate that we have seen traction in the retail book. But, not much traction was seen in the corporate book, said Dinesh Khara, Chairman, SBI
 "Valuation of SBI, subsidiaries can be better: Chairman Dinesh Kumar Khara")
Retail, farm credit get traction in May amid Covid-induced slowdown
Credit to Mid, small units also see higher growth
 "Retail, farm credit get traction in May amid Covid-induced slowdown")
Averse bankers, willing RBI push companies towards the bond market
The corporate bond market is still dominated by financial companies, but non-financial companies have marked their presence in the past one year
 "Averse bankers, willing RBI push companies towards the bond market")
Best of BS Opinion: The credit push, post-Covid economy, and more
Here are the best of Business Standard's opinion pieces for Tuesday
 "Best of BS Opinion: The credit push, post-Covid economy, and more")
Booster dose: Govt unveils Rs 6.3-trillion package to spur growth
Includes credit guarantee schemes, steps to revive tourism, strengthen health infra
 "Booster dose: Govt unveils Rs 6.3-trillion package to spur growth")
The credit push
Relief package is well-intentioned but won't move the needle much
 "The credit push")
RBI proposes to lift interest rate cap on microfinance institutions
Proposes debt-income cap; common rules for all micro-loan lenders
 "RBI proposes to lift interest rate cap on microfinance institutions")
'We're not experts': Supreme Court rejects plea for loan moratorium
These are all in the realm of policy decision. These are issues having financial implications and we are not the experts, the Court said
 "'We're not experts': Supreme Court rejects plea for loan moratorium")
Here's how you can take charge of family's finances after spouse's death
File insurance claims, repay loans, and synchronise investment portfolio with altered risk profile
 "Here's how you can take charge of family's finances after spouse's death")
The road ahead for State Bank of India
The elephant in Indian banking has already become nimble-footed. Its new boss, Dinesh Khara, needs to choreograph the steps for its dance
 "The road ahead for State Bank of India")
Edelweiss boosts co-lending partnership with Central Bank of India for MSME
Edelweiss Retail Finance Ltd announced strengthening of its co-lending partnership with Central Bank of India for priority sector lending to micro, small and medium enterprises
 "Edelweiss boosts co-lending partnership with Central Bank of India for MSME")
In pandemic year, bank frauds down 25% by value: RBI annual report
In terms of number, fall is 15%; share of PSBs in cases declines
 "In pandemic year, bank frauds down 25% by value: RBI annual report")
New credit culture
A big step by SC in allowing banks to chase personal guarantors
 "New credit culture")
SBI eyes over Rs 10K-crore credit pipeline for health infrastructure
Ashwani Bhatia, managing director, SBI, said the bank had held discussions with firms that needed funds for building hospital infrastructure
Banks make a beeline at Covid vaccine makers' doorstep to offer loans
Amid feeble credit offtake due to local lockdowns this year, lenders sanction Rs 6,000-crore line of credit to SII
 "Banks make a beeline at Covid vaccine makers' doorstep to offer loans")