According to a study by CARE Research, some banks are restructuring the debt of their borrowers through bilateral negotiation without referring the cases to the corporate debt restructuring (CDR) cell. The study found that out of the Rs 177,333 crore outstanding restructured advances of 10 large banks, only Rs 58,366 crore worth of loans were referred to the CDR cell
Category: Infrastructure Finance
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Officials discuss issues in stressed loan mkt
Usha Thorat, Director of the Centre for Advanced Financial Research and Learning (Cafral), held discussion with banks, rating agencies and asset reconstruction companies (ARCs) on the issues in the stressed loan market. Typically, banks sell non performing assets (NPAs) to ARCs, which in turn tries to recovers the loan from the borrowers. ARCs acquire stressed assets from banks at a mutually agreed upon price and then recover it fro
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Banks’ credit offtake up in April-May, deposit growth slows
Demand for working capital and home loans helped the banking system log higher credit growth in the first two months of the current financial year compared with the corresponding year ago period. In the first two months, the banking systemÂ’s deposit growth was lower as compared with the corresponding year ago period.
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GSPC completes stake buy in GGCL
GSPC is learnt to have completed the acquisition of
65.12 per cent stake in Gujarat Gas Co (GGCL) for about Rs 2,460 crore from London-based BG Group. Reserve Bank of India (RBI) and the Competition Commission of India (CCI) have already approved the transaction between BG Group and GSPC. Gujarat Gas Co (GGCL) is the largest private natural gas distributor in India. In October 2012, BG Group entered into a binding agreement for the sale of the s
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Shipping Corp struggles to improve its financials
To improve its financial status, the Shipping Corporation of India (SCI) has signed several MoUs with its public sector undertaking peers such as Coal India, ONGC, SAIL and Gail India. SCI has been striving to take advantage of the pacts. For now, its financials continue to be under stress. SCI is yet to form joint ventures with Coal India and Oil and Natural Gas Corporation which could have provided the firm with assured cargo and revenues. SCI has not acquired vessels yet for operation as per
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Govt to take steps to support foreign investment
Raghuram G Rajan, Chief Economic Adviser, Ministry of Finance assured that the government will continue to implement measures to ease foreign investor portfolio inflows and some will be done very shortly. He also said that the government continues to undertake measures to ensure the current account deficit (CAD) is safely financed. In the coming weeks, the government will be recommending the policies to enha
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PEs deploy largest amount in 5 yrs in May
During May 2013, private equity funds announced 30 deals totaling to $ 2.1 billion, making it the highest monthly total since January 2008, Ernst & Young said in a report. A large part of the investment came from Qatar Foundation Endowment, which committed $ 1.26 billion investment in telecom major Bharti Airtel. This is the seco
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Minister raises concern on rising bad loans
Finance Minister P Chidambaram raised concern about the rising non-performing assets (NPAs) in the banking system and asked banks to control it order to prevent adverse impact on profitability. Huge provisioning for NPAs is eating into the profits of state-owned banks, the minister said while addressing the annual general meeting of the Indian BanksÂ’ Association
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Minister asks banks to reduce lending rates
Finance minister P Chidambaram wants commercial banks to reduce lending rates in response to the easing monetary policy stance of the Reserve Bank of India (RBI). While the RBI reduced the policy repo rate three times this year since January, banks have not passed on the rate cut to customers in terms of lowering interest rates on lending
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Ministry official suggests oversight mechanism for CDR
Commercial banks received a suggestion from Financial Services Secretary Rajiv Takru to have an independent oversight mechanism for considering cases under the corporate debt restructuring (CDR) cell. Takru suggested that the independent mechanism must not have any government representative or any serving banker, but some experts who can scrutinise from the correctness point of view whether the case refer