Technical Write Off News Today

Mumbai: Federal Bank reported a net profit of Rs 906.30 crore for the quarter ended March 31, 2024.

RBL Bank reported a 30% year-on-year growth to Rs 353 crore in the March 24 quarter, with the full-year net profit reaching Rs 1168 crore. The banks board proposed a dividend of Rs l.50/- per share for FY 2023-24.

According to information provided by the Reserve Bank of India (RBI), 2,623 unique borrowers who are classified as wilful defaulters. These borrowers have a total outstanding debt of Rs 1,96,049 crore with scheduled commercial banks as of March 2023. The data pertains to borrowers with aggregate exposures of Rs 5 crore and above.

Banks have again approached the Reserve Bank of India (RBI) to request an extension in the deadline for classifying non-performing accounts as wilful defaulters, according to sources familiar with the matter. In September, the RBI had initially given banks six months to comply with the draft rules titled Framework for Compromise Settlement and Technical Write-offs regarding the treatment of wilful and large defaulters.

Indian banks have refrained from declaring overdue loan accounts as fraud as the Supreme Courts decisions make it obligatory for lenders to provide borrowers an opportunity to represent themselves before naming accounts as fraud. The lenders have made provisions instead of declaring accounts as wilful defaults. The RBI has sought comments from banks on legal and operational issues on the common detection mechanism of wilful defaulters.

Bankers are wary of their decisions being questioned by vigilance and investigation agencies later, and want some assurance from the regulator before implementation of the circular. Lenders have held discussions with all stakeholders, including the government, soon after the circular was published, and want additional clarity before provisions are implemented.

While some reports had said that wilful defaulters can now get a new loan after 12 months of executing a compromise settlement, the RBI said this was not the case.

Party's communications chief Jairam Ramesh issued a statement saying that 'the PM has always eagerly bent or changed rules to help his friends in a few large business groups'

The Congress party has criticized the Reserve Bank of Indias (RBI) decision to allow banks to make a compromise settlement on fraud accounts and wilful defaults. Congress General Secretary Jairam Ramesh has demanded that the RBI immediately repeals its instructions, stating that the new rules mean wilful defaulters who have run away with public money are receiving a "clean chit". The Congress party has claimed that banking frauds have risen 17-fold under the current Modi government.

Addressing a press conference at the AICC headquarters here, AICC secretary Vineet Punia and Congress leader Amitabh Dubey said the financial burden on this country from fraud and wilful defaults has been severe.