Technical Write Offs News Today

IDBI Bank's interest income improved during the third quarter of the current fiscal to Rs 6,541 crore, as against Rs 5,231 crore in the same period last fiscal; IDBI Bank Q3 Net Profit Jumps 57% to Rs 1,458 Crore

The Reserve Bank of India (RBI) is considering making in-person hearings with borrowers mandatory for lenders dealing with potential wilful defaulters, in an effort to increase chances of recovery at an early stage.

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These wilful defaulters include fugitive Mehul Choksi’s Gitanjali Gems Limited, Rishi Agarwal’s ABG Shipyard Limited, REI Agro Limited, and Era Infra Engineering Limited. 

The RBI has asked lenders to put in place board-approved policies for undertaking compromise settlements with the borrowers as well as for technical write-offs. The rules formalised by the board will also specify proposals for compromise settlements in respect of debtors classified as fraud or wilful defaulter.

According to the RBI, the primary regulatory objective of the circular -- issued on June 8, 2023 -- is to enable multiple avenues to lenders to recover the money in default without much delay.

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Total income during the quarter increased by 0.5% year-on-year (YoY) to Rs 6,962.59 crore. Net Interest Income (NII) jumped 37.5% to Rs 3240 crore in Q4 FY21 from Rs 2356 crore in Q4 FY20. Net Interest Margin (NIM) improved 134 bps to 5.14% as on 31 March 2021 as compared to 3.80% as on 31 March 2020. Operating Profit was at Rs 2879 crore in the fourth quarter, up by 53.6% from Rs 1874 crore reported in the same period last year. Provisions & Contingencies increased by 55.1% to Rs 2457 crore...