Financial services secretary Rajiv Takru has asked banks to compulsorily file FIRs against willful defaulters while extending support to borrowers who have defaulted due to economic slowdown
GN Bureau | October 21, 2013
As bankers prepare for the review meeting with finance minister P Chidambaram on Tuesday, the finance ministry has suggested a two-way approach to check the mounting pile of bad loans. It has asked public sector banks (PSBs) to provide adequate support to companies which have defaulted on loan repayments due to the economic slowdown while going after those that are wiful defaulters.
According to a report in the Economic Times, financial services secretary Rajiv Takru has highlighted the urgent need to check the rising non-performing asset (NPA) figures. “Every bank in any particular lending consortium will have to file an FIR (first information report) against a borrower who is found to be a wilful defaulter. This is an act of criminality. However, lenders need to...support those borrowers who fail to repay loans due to industrial or sectoral issues. Banks are working on this,” Takru said.
Explaining the criminal aspect behind a wilful default, Takru said that a willful default occurs when a company ceases to repay loans because of fraud. Takru has also suggested that banks take over management control of companies whose loans have been approved for restructuring.
Till June, 549 cases of corporate loan defaults worth Rs 3.38 lakh crore had been referred to the corporate debt restructuring (CDR) cell. This marks a 49 percent jump from last year’s restructuring cases worth Rs 2.27 lakh crore.
On February 1, finance minister Nirmala Sitharaman announced the Union Budget. As Dr. Rajiv Kumar, the Pahle India Foundation chairman and former NITI Aayog vice chairman, succinctly summed up, “Budget 2023 is a consolidation of the gains over the years, and a positive step towards sustained economic
The Indian Metropolis: Deconstructing India’s Urban Spaces By Feroze Varun Gandhi Rupa, 840 pages, Rs 1,500 Feroze Varun Gandhi, a Member of Parliament from the BJP, has been a published poet. He is also a policy expert – he had published &
On mission mode, Indian Railways` Freight loading for first ten months of this financial year 2022-23 has crossed last year’s loading and earnings for the same month. On cumulative basis from April 2022 to January 2023, freight loading of 1243.46 MT was achieved against last year&rsquo
Mumbai’s municipal commissioner and administrator Iqbal Singh Chahal on Saturday announced a Budget of Rs 52,619.07 crore for 2023-2024, an increase of 20.67% over a revised budget estimate of Rs 43607.10 crore for 2022-23. The overall budget size has doubled in five years. In 2017-18
Imprints of the Populist Time By Ranabir Samaddar Orient BlackSwan, 352 pages, Rs. 1105 The crisis of liberal democracy in the neoliberal world—marked by massive l
Union minister of finance and corporate affairs Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday. The highlights of the Budget are as follows: PART A Per capita income has more than doubled to Rs 1.97 lakh in around