Yes Bank says no to National Asset Reconstruction Company, says will pursue own NPA aggregator
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At the same time the bank is still pursuing its objective of a majority owned asset reconstruction company (ARC) and is waiting for the new set of guidelines from the Reserve Bank of India (RBI) said CEO Prashant Kumar said. RBI has refused Yes Bank permission to hold a majority stake in an ARC citing conflict of interest.
Agencies
The bank hired a net 1000 people during fiscal 2021 taking the total employee count to 22,000 and Kumar said focus on growth especially in retail loans will help the bank improve its earnings profile.
MUMBAI: The Indian Banks’ Association (IBA) has asked members to identify large loans where they are lead bankers and get approval from colenders so that these loans can be sold to a National Asset Reconstruction Company (NARC, or the bad bank).
The association has identified 102 corporate bad loans, totalling to Rs 2 lakh crore, where the amount outstanding in each is over Rs 500 crore. They include loans in a variety of industries. These have been languishing in the books of banks for years with many admitted under the insolvency process. These loans are almost fully provided for over the years and they exclude the ones where there is fraud involved or those currently under liquidation. Approval from 75% of the lenders by value is required to transfer the loans to an ARC.
Bad bank to get Rs 2 lakh crore of defaulting companies’ loans
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The association has identified 102 corporate bad loans, totalling to Rs 2 lakh crore, where the amount outstanding in each is over Rs 500 crore. They include loans in a variety of industries. These have been languishing in the books of banks for years with many admitted under the insolvency process.
The IBA had proposed a public sector bad bank to take over bad loans of Indian lenders.
(This story originally appeared in on Apr 29, 2021)The Indian Banks’ Association (IBA) has asked members to identify large loans where they are lead bankers and get approval from co-lenders so that these loans can be sold to a National Asset Reconstruction Company (NARC, or the bad bank).
What s coming from RBI: Inflation forecast cut, dovish rate stance
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The accommodative stance is expected to be buttressed by long-term repos and the purchase of government bonds from banks. Adding to the dovishness in the RBI’s stance would be a likely reduction in inflation forecast.
Agencies
Earlier this month, the central bank had expressed its displeasure with banks over their inability to prepare themselves for a new regime of bank-led authentication of recurring card payments.
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(This story originally appeared in on Apr 07, 2021)Mumbai: The second wave of Covid in India will compel Reserve Bank of India (RBI) governor Shaktikanta Das to stick to an accommodative monetary policy even as he is expected to announce status quo on policy rates on Wednesday.
February 08, 2021
Asset reconstruction companies (ARCs) – the 29 existing ones – are pinning hopes that they would get a level-playing field with the to-be-formed National Asset Reconstruction Company announced in the recent Budget.
They feel there should not be differentiated regulations for the two sets of ARCs, said sources in the industry.
Hybrid model
While the government is not going to put in equity in the newly-announced ARC, there is now talk of government giving a guarantee, which has led to concerns among existing ARC players. The way things are moving – it looks like the final ARC that will be set up on the ground will neither be bank-led nor government-led. It is more likely to be a hybrid model, where the government is expected to chip in with its support in terms of guarantees, said industry observers.