RBI puts 200 stressed account under scanner

Agencies
August 15, 2018

New Delhi, Aug 15: As part of its effort to contain rising non-performing assets (NPAs), the RBI has started scrutiny of 200 large accounts to assess the level of stress and provisioning done against them by respective banks.

Reserve Bank of India (RBI) is examining as to whether banks have followed prudential norms in respect of these stressed assets, a senior public sector bank official said.

It is also assessing classification, provisioning and debt recast in respect of those loans, the official added.

This is a part of the regular annual inspection of the book of the banks that the central bank undertakes each year after the closure of the financial year, another official said.

Some of the accounts include Videocon, Jindal Steel and Power, the official added.

This exercise comes at a time when gross NPAs in the banking system has risen to around Rs 10.3 lakh crore, or 11.2 per cent of advances, compared to Rs 8 lakh crore, or 9.5 per cent of the total loan, as on March 31, 2017.

Following the annual inspection of the last year, many lenders, including Axis Bank, Bank of India and Yes Bank, were caught for under-reporting of NPAs.

The lenders started reporting divergences since June last year for having under-reported NPAs in FY16. This was followed by the second round of disclosures, starting October, of under-reporting in FY17 by a few lenders.

In most cases, this led to a shooting up of NPAs and an ensuing jump in provisions against dud assets. This eroded their bottom lines and led to a sell-off in the stock causing erosion of wealth for investors.

Private sector lenders, which were reputed for their caution on the asset quality front vis-a-vis the poorly governed state-owned peers, were the worst hit in this exercise.

Among others, mid-sized private sector lender Yes Bank was found to have under-reported gross NPAs by a whopping Rs 11,000 crore in the two fiscals, while the third largest lender Axis Bank was found to have a divergence of over Rs 14,000 crore and ICICI Bank had over Rs 5,000 crore on these accounts for FY16 alone.

Last year, RBI had tweaked the rules to make it compulsory for lenders to disclose under-reporting of bad assets. Before this, there was a massive book clean-up through the asset quality review (AQR) in the previous year.

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News Network
May 29,2020

New Delhi, May 29: In a powerful display of inter community solidarity, a team of Sikh volunteers visited Delhi's Jama Masjid and sanitized the 17th century monument.

As the national capital battled coronavirus, the historic Jama Masjid is closed for congregational prayers. However, the team of Sikh volunteers effectively sanitized the monument to ensure it is safe for the caretakers and visitors.

The volunteers affiliated with United Sikhs organization also met Naib Shahi Imam of Jama Masjid Syed Shaban Bukhari during the visit. The latter thanked the team for the humanitarian gesture and underlined the need for all sections of humanity to unite in the face of this crisis.

"The Sikh community has always displayed exemplary commitment to humanity and we are thankful to the United Sikhs' team for their initiative. This enormous crisis facing the human race can be fought off only if all communities, nations and people unite and fight it together. In recent weeks we have seen heart wrenching images of misery in the country as thousands of migrant workers return to their villages. At the same time we have also seen positive stories of different people uniting to help and feed them. We hope that together we will overcome this crisis," said Syed Shaban Bukhari, Naib Shahi Imam, Jama Masjid, Delhi.

Shaban Bukhari has also advised Muslims across the country to strictly avoid congregational prayers this Eid and pray at homes. He is young leader, who really believes in secularism. For him, humanity and kindness come first.

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March 24,2020

New Delhi, Mar 24: Thirty-two states and Union Territories (UTs) have announced complete lockdown to check the spread of the coronavirus in the country, informed the Central government on Tuesday.
There is a complete lockdown in as many as 560 districts of the country affecting several hundred million people.
Earlier, the complete lockdown was imposed in 30 districts, as of now, almost the entire country is in lockdown to restrict public movement in an attempt to break the chain of transmission of coronavirus.
Three states -- Uttar Pradesh, Madhya Pradesh and Odisha -- have announced lockdown in select districts with the governments continuously monitoring the situation and ready to extend the restrictions to other districts as well.
The Union Territory of Lakshadweep has announced restrictions on certain activities.
The Indian Railways has suspended all passenger train operations till March 31 in view of coronavirus.

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News Network
February 2,2020

Mumbai, Feb 2: Kerala Chief Minister Pinarayi Vijayan on Sunday slammed the BJP-led central government on the Citizenship Amendment Act (CAA) and said that the new law only serves the objectives of the Sangh Parivar of turning India into a Hindu Rashtra.

He said that in order to achieve their objectives, the "communal elements" are trying to divide India's people through the same strategy as employed by the British colonisers in the past.

Lauding people in Mumbai for their protests against CAA, the National Register of Citizens (NRC) and the National Population Register (NPR), the Kerala chief minister also outlined three reasons for his government's decision to reject the Citizenship Amendment Act.

"Over the last several weeks, Mumbai citizens made clear their unyielding opposition to efforts made by Hindutva elements to tear apart the secular fabric of our society. I express solidarity with struggles being made across the city in defence of secularism and the Indian Constitution," Vijayan said at an event here.

The chief minister was addressing the 'Mumbai Collective' here on the topic of 'National struggle against communalism'.

"The government of Kerala is acting as per the Constitution. Like Kerala, other states are also looking at CAA as against the fundamentals of the Constitution. It (CAA) violates basic human rights and is divisive and deeply discriminatory," CM Vijayan said, adding that the new citizenship law only furthers the Sangh Parivar's objective of creating a Hindu Rashtra.

He said the CAA needs to be rejected for three basic reasons.

"First, it is against the letter and spirit of our Constitution. Secondly, it is highly discriminatory and violative of human rights. Thirdly, it seeks to impose philosophy of Sangh Parivar with its mission of Hindu Rashtra," the chief minister said.

Vijayan also participated in the human chain organised by Left Democratic Front (LDF) against CAA and NRC and said that "the law is a threat to the secularism of this country".

The newly enacted law is facing stiff opposition across the country with several non-NDA states including Kerala, West Bengal, Rajasthan and Punjab refusing to implement it.

Rajasthan, Kerala and Punjab have passed resolutions against the recently amended law in their respective state Assemblies.

The CAA grants citizenship to Hindus, Sikhs, Jains, Parsis, Buddhists and Christians fleeing religious persecution from Pakistan, Afghanistan and Bangladesh and who came to India on or before December 31, 2014.

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