Bank of India swings from loss to profit in Q1, bad loans fall

Bank of India (BOI), the country’s sixth biggest lender by assets, reported a first-quarter profit as its bad loan ratio narrowed and loan-loss provisions fell. Net profit was Rs 87.71 crore in the quarter ended June 30, compared with a loss of Rs 741 crore a year earlier, the Mumbai-based bank said on Wednesday. Analysts… Continue reading Bank of India swings from loss to profit in Q1, bad loans fall

Bad loans: RBI to take up more cases, says Jaitley

The process of resolution of bad loans will start shortly, Finance Minister Arun Jaitley said on Thursday in the Lok Sabha as it passed a bill which gives RBI the power to direct banking companies to resolve the problem of stressed assets. Replying to a debate on the Banking Regulation (Amendment) Bill, 2017, Jaitley said… Continue reading Bad loans: RBI to take up more cases, says Jaitley

Debtors can’t be allowed to paralyse banking system, says Arun Jaitley

Finance Minister Arun Jaitley on Thursday said public sector banks needed the Banking Regulations Ordinance in order to be able to take decisions without fear of being subjected to investigation later. Replying to a debate on amendments to the Banking Regulations Act, Jaitley, who also holds the defence and corporate affairs portfolios, said the decision… Continue reading Debtors can’t be allowed to paralyse banking system, says Arun Jaitley

Banks need Rs 18,000 cr to resolve 12 NPA accounts flagged by RBI: Ind-Ra

Indian banks need to provide a bare minimum of Rs 18,000 crore additionally towards 12 big-ticket bad accounts identified for insolvency resolution, says India Ratings and Research (Ind-Ra). In June 2017, the Reserve Bank of India (RBI) had asked lenders to refer 12 identified accounts to the National Company Law Tribunal (NCLT) under the Insolvency… Continue reading Banks need Rs 18,000 cr to resolve 12 NPA accounts flagged by RBI: Ind-Ra

Haircut needed to resolve NPAs, says Rangarajan

Former Reserve Bank of India governor C Rangarajan says ‘some haircut’ is inevitable in the process of resolving the big load of bad loans at government-owned banks. A haircut is the term for the writeoff a lender accepts on a debt payment when a borrower can’t repay what is due at a point in time.… Continue reading Haircut needed to resolve NPAs, says Rangarajan

Huge haircut needed on largest NPAs, says CRISIL

Financial News Rating agency CRISIL said the banks in question would need to find an extra Rs 40,000 crore as bad loan provisioning for the 12 big-size cases being referred, on Reserve Bank of India (RBI) order, to the National Company Law Tribunal (NCLT) for resolution. These 12 large accounts had become non-performing assets (NPAs)… Continue reading Huge haircut needed on largest NPAs, says CRISIL