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

RBI lifts restriction on foreign investment in IDFC

The Reserve Bank of India (RBI) has removed the restriction on foreign investment in IDFC Ltd after the shareholding of overseas investors fell below the prescribed level. “The foreign shareholding by foreign institutional investors/foreign portfolio investors in IDFC have gone below the prescribed FII/FPI investment limit. Hence, the restrictions placed on the purchase of shares… Continue reading RBI lifts restriction on foreign investment in IDFC

Govt loosens norms for auditor rotation at unlisted companies

The government has relaxed conditions for unlisted companies that do not have loans, from banks, financial institutions or deposits from the public, of more than Rs50 crore on rotation of auditors. Currently, these companies can’t appoint individual auditors for five consecutive years and auditor firms for two straight terms of five years, if their paid… Continue reading Govt loosens norms for auditor rotation at unlisted companies

MPC meeting minutes: Dholakia argued for at least 50-bp rate cut

Ravindra H Dholakia’s proposition, that plunging inflation called for a drastic rate cut of 50 basis points (bps) or more, clearly did not find other buyers in the six-member Monetary Policy Committee (MPC) that met on June 6 and 7. As the statements of the minutes show, they favoured a wait-and-watch. The MPC voted five… Continue reading MPC meeting minutes: Dholakia argued for at least 50-bp rate cut

NPA resolution: PMO takes stock of progress

The Prime Minister’s Office today held a stock taking meeting with senior officials of the ministries of finance and corporate affairs to review the progress in resolution of NPAs in the light of recent action taken by the Reserve Bank on stressed assets. Prime Minister’s additional secretary P K Mishra had a review meeting on… Continue reading NPA resolution: PMO takes stock of progress

12 large NPA cases yet to come before IBBI, says M S Sahoo

Insolvency and Bankruptcy Board of India (IBBI) Chairman M S Sahoo today said the 12 cases involving large non-performing assets (NPAs) or bad loans, identified for resolution under the Insolvency and Bankruptcy Code, are yet to come before the board. The Reserve Bank’s internal advisory committee had last week sent the list of 12 accounts… Continue reading 12 large NPA cases yet to come before IBBI, says M S Sahoo

Bank of Maharashtra shares down nearly 4% on RBI’s PAC action

Shares of Bank of Maharashtra (BoM) on Monday fell nearly 4 per cent as the Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PAC) against the company in view of a high level of bad loans and negative return on assets. The stock went down by 3.40 per cent to close at Rs… Continue reading Bank of Maharashtra shares down nearly 4% on RBI’s PAC action