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.
An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr
Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis
The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun
Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government
The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i
Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for