Contact Your Financial Adviser Money Making MC
12 June 2017
Plagued
by huge bad loans problem, the government on Monday said the Reserve Bank of
India (RBI) is in an advanced stage of preparing a list of debtors whose cases
will be taken up through the insolvency route for a speedy resolution. The Total Investment & Insurance
Solutions
"RBI
is at a fairly advanced stage of preparing a list of those debtors where
resolution is required through Insolvency and Bankruptcy Code (IBC) process,
and you will be shortly hearing about it," Finance Minister Arun Jaitley
told reporters after the morning session of a meeting here with heads of public
sector banks called to review the situation on Non-Performing Assets
(NPAs).
RBI has
constituted a committee which is working on resolution of NPAs.
"There
are 81 cases that have been filed under IBC. Of these, 18 cases have been
initiated by financial creditors. These are already before the National Company
Law Tribunal (NCLT) and since the bulk of NPAs, about 70 per cent, are either
in consortium or multiple banking arrangement, a speedy resolution is
required," he said. The Total
Investment & Insurance Solutions
RBI
Deputy Governor S.S. Mundra, who was also present at the meeting, said RBI has
already collected information of bad loan accounts from banks.
"Right
now, the RBI is discussing on it. Information has already been collected on
such accounts from banks," Mundra said. The Total Investment & Insurance Solutions
Jaitley
said that at the review meeting, various challenges to credit growth and their
resolution were considered as the public sector banks' state finances continued
to be the major concern.
"Challenge
with regard to credit growth was discussed and resolution also came up for
consideration. In the morning session, the most important item was with the
state of finances of public sector banks (PSBs) and NPA resolution," he
said. The Total Investment &
Insurance Solutions
In the
detailed presentations made at the meeting, it emerged that in 2016-17, PSBs
have made a stable operating profit of Rs 1.5 lakh crore. Subject to various
provisioning requirements, their net profit stood at Rs 574 crore. The Total Investment & Insurance
Solutions
Further,
a review of financial inclusion schemes like Mudra Yojana, Stand Up India and
cyber security was also done at the meeting here. The Total Investment & Insurance Solutions
Detailed
discussions on movement towards digitalisation were also held and a
presentation was made in this regard. The
Total Investment & Insurance Solutions
Since
the banking industry will also be liable to pay the Goods and Services Tax
(GST), in the afternoon session the bankers will meet Revenue Secretary Hasmukh
Adhia and other officials of certain departments of governments, Jaitley said.
When
asked if the government was considering further consolidation of public sector
banks, Jaitley said efforts were on in that direction. The Total Investment & Insurance
Solutions
"Consolidation
was not on agenda in today's meeting. But we are actively working in that
direction. I can't give further details."The Total Investment & Insurance Solutions
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