Page 2 - Stressed Assets

Be watchful of Covid situation, push credit flows: Shaktikanta Das to banks

Takes stock of the progress in implementing Covid resolution framework

Transfer NPAs to bad bank at book value, says Parliamentary panel

The panel urged the Reserve Bank of India to clearly define every step of the procedure to remove any ambiguity or discretion from the banks' side

NBFC stress will ease from FY22 with recovery in the economy: Experts

The level of stress in the sector will be less intense as economic activity has been improving gradually

Spike in India bank's stressed loans slower due to govt measures: Moody's

Ample domestic liquidity, loose monetary policy, moratoriums on loan repayments and government guaranteed loans to small businesses have supported Indian banks' asset quality

Union Budget 2021: S&P gives a thumbs up, Nomura calls it a positive

"Likewise, we believe that the resolution of troubled assets could be faster with weak assets consolidated in a single entity, rather than multiple banks negotiating resolution terms," S&P added

Budget a fine balance between prudent spending, incentives to woo capital

The FM's speech boosted sentiments through announcement of anticipated reforms like infra funding through a new DFI, 'bad bank'-type structure for resolution of stressed assets

Budget: ARC to fast-track PSB clean-up, initial capital pegged at Rs 10K cr

In their post-budget media interaction, finance ministry officials said banks will put in capital in the AMC, and the govt will give support, if required

Brace for selective interest in stressed assets

With looming uncertainty, investors will be very selective, cautious and careful in allocating funds towards this asset class

Ground ready for new options to resolve stressed assets: IBBI chief

The ground seems to be ready to experiment new options for resolution of stress and the market is anticipating a hybrid framework between a court-supervised insolvency framework and an out-of-court restructuring schemes, IBBI Chairperson M S Sahoo has said. In place for more than four years, the Insolvency and Bankruptcy Code (IBC) is helping in resolution of stressed assets in a market-linked and time-bound manner, and the proposal for "pre-pack" framework is also in the works. "Since some tasks of an insolvency proceeding are completed before the formal process begins, and some elements of formal process are avoided, pre-pack saves both on costs and time," Sahoo told PTI. The Insolvency and Bankruptcy Board of India (IBBI), a key institution in implementing the IBC, has also taken various steps to address difficulties of stakeholders concerned. According to him, insolvency regimes in most jurisdictions are not designed to address delinquencies arising from the COVID-19-like crisi

Fresh IBC suspension, pandemic may hit stressed assets resolution pace

Suspension of fresh proceedings under the insolvency law as well as the NCLT switching to virtual hearings seem to have put the brakes on the pace of resolution process for stressed assets

60 companies submit bids for Reliance Capital's asset monetisation

Oaktree, JC Flowers, 6 others submit EoIs for entire company

Guaranteed loans for stressed assets out of existing Rs 3 trn credit line

Scheme to be applicable to all 26 sectors identified by K V Kamath panel along with health sector, with past dues from Rs 50-500 crore as of 29 February, 2020

Lanco Infratech and lessons from a failed group resolution of troubled debt

The firm fundamentally has no assets, say experts. Ten of its subsidiaries are under corporate insolvency, most holding either a single or a group of road or power assets

SBI's Rajnish Kumar urges investors to take part in stressed assets sector

He also reiterated that the Insolvency and Bankruptcy Code (IBC) is not a recovery mechanism for lenders, but rather a means to preserve the value of enterprises

McLeod Russel pre-tax loss at Rs 94.9 cr in Q1 due to crop loss, lockdown

Total income for quarter down 28% at Rs 245.83 cr, net loss stood at Rs 90.52 cr as against a loss of Rs 11.64 cr a year ago

Stressed firms accuse ARCs of asset stripping in complaint to RBI

They say ARCs are giving backdoor entry to vulture funds through an effective "benami structure" after taking over debt from banks

Covid to drag down recoveries from stressed assets by 40% in FY21: Icra

Suspension of new IBC action to impact resolution; lenders may also have to take bigger haircuts

SBI to hold mega e-auction for 1,000 stressed assets to recover dues

The bank published the advertisement for the proposed auction in newspapers as well as the social media

IBBI proposes simultaneous CoC voting on two or more resolution plans

The Insolvency and Bankruptcy Code (IBC) aims at time-bound and market-linked resolution of stressed entities

Most banks will improve stressed assets by March, says SBI chairman

On transmission of monetary policy, he said the banks cannot lower rates beyond a threshold due to asset liability mismatch issues.