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Insolvency Law -Resolution of NPA's - Crores back to banks

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Enthused by successful conclusion of Bhushan Steel case, the finance ministry expects banks to write back more than Rs 1 lakh crore after the resolution of all 12 NPA cases referred to insolvency proceedings by the RBI it its first list.


Last week, Tata Group acquired controlling stake of 72.65 per cent in the debt-ridden Bhushan Steel Ltd for around Rs 36,000 crore will help in cleansing the banking system as well as boost lenders profitability.

The remaining 11 NPA cases which are in the pipeline will easily bring to the table over Rs 1 lakh crore and the amount coming from resolution under the Insolvency and Bankruptcy Code (IBC) will directly add to the bottomline and help in reduction of NPAs of the public sector banks, a senior finance ministry official told PTI.

Last year in June, RBI's internal advisory committee (IAC) identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks.

Following the RBI's advisory, banks referred Bhushan Steel Ltd, Bhushan Power & Steel Ltd, Essar Steel Ltd, Jaypee Infratech Ltd, Lanco Infratech Ltd, Monnet Ispat & Energy Ltd, Jyoti Structures Ltd, Electrosteel Steels Ltd, Amtek Auto Ltd, Era Infra Engineering Ltd, Alok Industries Ltd and ABG Shipyard Ltd to NCLT. These accounts together have total outstanding loan of Rs 1.75 lakh crore.

The Kolkata Bench of the National Company Law Tribunal (NCLT) has already approved Vedanta Resources's resolution plan for acquisition of Electrosteel Steels last month.

Besides, the NCLT last month also asked the lenders of Bhushan Power & Steel to consider the bid submitted by UK-based Liberty House for the debt-ridden company.

Bhushan Power and Steel owes close to Rs 48,000 crore to banks and was referred to the NCLT by Punjab National Bank in June last year.

Last week, Bamnipal Steel Ltd (BNPL), a wholly-owned subsidiary of Tata Steel, has acquired 72.65 per cent stake in Bhushan Steel by paying around Rs 36,400 crore, of which Rs 35,200 crore will be paid to financial creditors.

The buy-out is expected to bring relief in the form of capital boost to PNB that was one of the leading lenders to the debt-ridden company, the bank said in a statement.

PNB in a statement said the bank had the second highest exposure to Bhushan Steel and will benefit greatly from this acquisition.

PNB sources say that the ledger outstanding to Bhushan Steel was Rs 3,857.49 crore while Rs 1,542.99 crore were earmarked for provisioning.

With this resolution, PNB's NPA will fall by Rs 3,857.49 crore. While the bank will recover Rs 3,050 crore of the outstanding amount it will also be able to write off Rs 807.49 crore from the provision it had held for this NPA.

The resolution will also have a direct impact on the bank's bottom-line this quarter.

https://timesofindia.indiatimes.com/business/india-business/finance-ministry-expects-banks-to-get-back-over-rs-1-lakh-crore-with-resolution-of-12-major-npas/articleshow/64245359.cms

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First big bankruptcy success hands Rs 35,200 crore to banks

The biggest asset sale under India’s new bankruptcy law offers a breather to the nation’s banks, a number of which posted record losses for last quarter.

Tata Steel Ltd. on Friday bought insolvent Bhushan Steel Ltd. + and is paying Rs 35,200 crore ($5.2 billion) to Bhushan’s creditors. This is about 63 per cent of the Rs 56,000 crore claimed by a consortium including State Bank of India and Punjab National Bank, the biggest government-controlled lenders in the country and Bhushan Steel’s largest creditors. Their shares rose on Monday.

Banks had provisioned for a discount on the outstanding debt of more than 50 per cent, said Ravikant Bhat, an analyst at Emkay Global Financial Services Ltd. in Mumbai. “The successful resolution of Bhushan is a positive structural development for the banking sector.”

https://timesofindia.indiatimes.com/business/india-business/first-big-bankruptcy-success-hands-rs-35200-crore-to-banks/articleshow/64261157.cms

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5 minutes ago, Kiran said:

GM??

mee congi mess antha memu clean seyalsi vasthundhi :stupid:

aa clean chesinattu chesi ye nirav modi no malya dwarano malli amitshah jebuloki ravadamegaaaaaaa:roflmao:

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4 minutes ago, Kiran said:

First big bankruptcy success hands Rs 35,200 crore to banks

The biggest asset sale under India’s new bankruptcy law offers a breather to the nation’s banks, a number of which posted record losses for last quarter.

Tata Steel Ltd. on Friday bought insolvent Bhushan Steel Ltd. + and is paying Rs 35,200 crore ($5.2 billion) to Bhushan’s creditors. This is about 63 per cent of the Rs 56,000 crore claimed by a consortium including State Bank of India and Punjab National Bank, the biggest government-controlled lenders in the country and Bhushan Steel’s largest creditors. Their shares rose on Monday.

Banks had provisioned for a discount on the outstanding debt of more than 50 per cent, said Ravikant Bhat, an analyst at Emkay Global Financial Services Ltd. in Mumbai. “The successful resolution of Bhushan is a positive structural development for the banking sector.”

https://timesofindia.indiatimes.com/business/india-business/first-big-bankruptcy-success-hands-rs-35200-crore-to-banks/articleshow/64261157.cms

Dammu unte Gali J reddy iron ore ammina dabbu ni /jagan nookina lakshala crores ni kakkinchandi bayataki

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52 minutes ago, vinayak said:

Dammu unte Gali J reddy iron ore ammina dabbu ni /jagan nookina lakshala crores ni kakkinchandi bayataki

Ledhu avi ndhuku chestham

Account lo Minimum balance ledhu ani cut chesukoni 3000 crores pogestham

 

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1 hour ago, vinayak said:

Dammu unte Gali J reddy iron ore ammina dabbu ni /jagan nookina lakshala crores ni kakkinchandi bayataki

Kikiki

Vaatiki answers undavu

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1 hour ago, vinayak said:

Dammu unte Gali J reddy iron ore ammina dabbu ni /jagan nookina lakshala crores ni kakkinchandi bayataki

kakkinchi prajalaki panchuthunnaru ga election time lo :laughing:

On a serious note this thread is regarding NPA/bank solvency issue. The cases u mentioned are still under investigation and ED attached some assets. X chesaru ante dammunte Y cheyandi ane logic ki:comfort:

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16 minutes ago, Jaitra said:

Kikiki

Vaatiki answers undavu

Manishi ki aasa vundochhu kani athyasa vundadhu... Pakkanollu 2 out of 10 ayithe... Memu 5 out of 10 ... But mi lanti vallu migilina 5 sangathi enti ani eedustharu... 

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35 minutes ago, NatuGadu said:

Manishi ki aasa vundochhu kani athyasa vundadhu... Pakkanollu 2 out of 10 ayithe... Memu 5 out of 10 ... But mi lanti vallu migilina 5 sangathi enti ani eedustharu... 

Daaniki mari 56 inches chest endhuku....Guddi lo mella ani chepukovachu gaa.....uttam purush cuttings endhuku

 

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42 minutes ago, Jaitra said:

Daaniki mari 56 inches chest endhuku....Guddi lo mella ani chepukovachu gaa.....uttam purush cuttings endhuku

 

Ala cheyyakapothe votes ralatledhugaa

CBN emanna takkuva... Graphics chupinchadu

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9 minutes ago, NatuGadu said:

Ippudu bayatapadda scams Anni anyina hayamlonegaa jarigindhi

Aa scams annee mee party vaalla fake allegations ani proved na.... e.g. the biggest scam in Indian history 2g got cleared with the blessings of your modi Saab...

 

You have to appreciate the guts of MMS to introduce information act.... which helped the nation but spoiled congress.... alaanti scheme mee party vaallu life time lo okkati introduce cheyyamanandi....

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22 minutes ago, nbk@myHeart said:

Aa scams annee mee party vaalla fake allegations ani proved na.... e.g. the biggest scam in Indian history 2g got cleared with the blessings of your modi Saab...

 

You have to appreciate the guts of MMS to introduce information act.... which helped the nation but spoiled congress.... alaanti scheme mee party vaallu life time lo okkati introduce cheyyamanandi....

+1

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Hair cut will be more than 50-60% for these 12 accounts..!! 

After these 12 companies, there will be much greater haircut. Small and medium companies have been misusing IBC to transfer their business to friends and default. 

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6 hours ago, Kiran said:

GM??

mee congi mess antha memu clean seyalsi vasthundhi :stupid:

Vajpayee time lo loans ivvaleda banks leka Vajpayee is no more BJP na? Thala papam thala pidikili. Mi party kuda indulo bagasthule kada. Burada inko party ki athikisthe saripoddi anukunte ela?

Edited by JAYAM_NANI

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3 hours ago, NatuGadu said:

Ala cheyyakapothe votes ralatledhugaa

CBN emanna takkuva... Graphics chupinchadu

ante mothaniki CBN ni follow avuthunnam antunnaru. poni adaina sarigga avvandi.

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4 hours ago, nbk@myHeart said:

Aa scams annee mee party vaalla fake allegations ani proved na.... e.g. the biggest scam in Indian history 2g got cleared with the blessings of your modi Saab...

 

You have to appreciate the guts of MMS to introduce information act.... which helped the nation but spoiled congress.... alaanti scheme mee party vaallu life time lo okkati introduce cheyyamanandi....

Enti information act full credit mounmohan kaa and lifetime lo okati alantidhi cheyalaaaa :laughing:

ba187703-860a-479c-8f0b-459aceb039e1

Anyone who follows the ruling party’s speeches and campaign, what stands out is that Right to Information (RTI), Food Security Bill and Right to Education Bill are among the three major accomplishments they are going to people with. But, as more and more people are now pointing out, all these bills are nothing but what the NDA government had already done and what the UPA has done is to merely give it a new nomenclature.

Let us look at the RTI Act, which, in more ways than one has been a game changer. The act was enacted and assented in June 2005, when UPA had been in power for a year. But what was RTI really? It was nothing but the Freedom of Information (FOI) Act 2002 that was enacted by the NDA government.

In fact, the aim of the act was the same as the RTI and, as this letter dated January 30, 2003, from the then secretary, Department of Personnel and Training (DoPT) shows, the government had started moving towards promoting it.

Other than calling it the “beginning of a new era in approach of government functioning where openness shall now be the rule and secrecy an exception”, the letter went on to ask all secretaries to “provide before hand the requisite infrastructure in the form of rules etc.”

In fact, so serious was the NDA government about this act’s implementation that the letter from the DoPT said: “the provisions contained therein give the Act an over-riding effect in character. In keeping with this, we would suggest that an immediate review may be undertaken for all such Acts and Instruments administered by the Ministry and amendments made thereto, wherever necessary, so that the scheme is not subverted through the operation of conflicting provisions in these Acts/Instruments.”

The letter then went on to say “suitable action may be taken on priority basis so that there is no cause for delay in brining the act into force”, before concluding: “As the entire infrastructure for bringing the Act into force has to be set up within the shortest possible time, I shall be grateful if the above aspects receive your personal attention.”

This was January 2003. RTI came in 2005. If one were to analyse, bluntly put, it is nothing but a case of the UPA coming to power and sitting on it for a couple of years, give it a new name and then take credit for it. In fact, Aruna Roy and Arvind Kejriwal have, perhaps, worked harder to popularise and take it to the masses than any of the large political parties. 

And it is not just this. Even the Right to Education Bill, which is once again seen as a game changer, was actually conceived in 2003 as something called “Free & Compulsory Education for Children.”

If you dig the net and the social media, there are plenty of other instances available where something that was thought through and started during NDA was appropriated by the UPA after a slight break by merely giving it a new name.

 

https://blogs.timesofindia.indiatimes.com/randomaccess/is-rti-really-a-congress-creation/

 

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2 hours ago, NatuGadu said:

Avvaka avvaka graphics nee avvali

evaro vakarini follow avvali gaa. evarini avutharo thondaraga decide chesukonidi. nimishaniki okarini marchukuntu mi (i mean oka nimishaniki okarini follow  avuthu) matuku meeku special path kuda create chesukovochu le.

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