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.
The Essential U. R. Ananthamurthy Edited by N. Manu Chakravarthy and Chandan Gowda Aleph Books, Rs 899, 312 pages
Early Bird and the Rainmatter Foundation have announced five bird walks, led by naturalists, across India on June 10. The walks, to be held in Agartala, Dehradun, Mysore, Panjim, and Tirupati early in the morning, are part of the Rainmatter Foundation’s Walking Lightly campaign, being observed throug
The Ministry of Environment, Forest and Climate Change, Government of India organized the World Environment Day on Monday with a thrust on Mission LiFE. The concept of LiFE, i.e., Lifestyle for Environment was introduced by prime minister Narendra Modi at the World Leaders` Summit in Glasgow at COP26, when
Green Banking is an initiative taken by the banks to promote environment-friendly practices and reduce carbon footprint of their activities. Green financing (a part of ‘Green Banking’) is a broad term that can refer to a financial investment flowing into sustainable development projects and ini
The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is ₹1,57,090 crore of which CGST is ₹28,411 crore, SGST is ₹35,828 crore, IGST is ₹81,363 crore (including ₹41,772 crore collected on import of goods) and cess is ₹11,489 crore (including ₹1,057 crore collecte
Climate change rising temperature and sea levels are posing new risks for coastal cities. With population growth rate of 1%- 2% in India every year, Mumbai too is growing and is population will double from 20 million to 40 million in the coming years. The city is also at the risk of rising sea level. It ne