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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 12,2020

Hyderabad, Jul 12: Hyderabad MP and All India Majlis-e-Ittehad-ul-Muslimeen chief Asaduddin Owaisi on Saturday condemned the demolition of a mosque and a temple inside the Secretariat building. He demanded the arrest of the contractor for demolition.
"During the process of demolition of the Secretariat building in Telangana, the mosque and temple were also demolished. The contractor must be booked and should be arrested. The public should know that we condemn this," he said while speaking to news agency.
Pointing out that his party MLAs Akbaruddin Owaisi and Moazam Khan have urged the state Assembly to look into the matter, he added, "We are not against the building of a new Secretariat, but what we asked for is not to destroy these structures during the process."
He welcomed the Chief Minister's announcement regarding the rebuilding of these structures.
"We expect the mosque to be built in the exact same place where it once stood. We expect the Chief Minister to speak to the representatives and meet our expectations and emotions about the mosque," he added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 9,2020

Kolkata, Mar 9: A diabetic man died in the isolation ward of a hospital in West Bengal's Murshidabad on Sunday, a day after he was admitted there with suspected symptoms of coronavirus following his return from Saudi Arabia.

According to doctors, he was admitted to the hospital with fever, cough and cold.

Though test results of his blood and swab samples for novel coronavirus were awaited, it can be said that he died probably of diabetes, Director of Health Services Ajay Chakraborty told PTI.

"The man was highly diabetic and was on insulin. He returned home from Saudi Arabia and had no money to take insulin for the last three to four days.

"He was also suffering from fever, cough and cold. He was admitted to the isolation ward of the Murshidabad Medical College and Hospital yesterday and died today," the health services director said.

"We are waiting for the results of medical tests. The possibility of his death due to novel coronavirus infection is remote," he said.

However, precautions will be taken during the last rites of the victim according to the directives set by the central and state governments for patients who die of the virus, another senior official said.

"Family members will not be allowed to touch the body since the man had been suffering from cough and breathlessness. Those performing his last rites will be given protective gear, masks and gloves. Though test results are yet to be known, we do not want to take any chance," he said.

Meanwhile, the state health department has issued a directive to all private medical facilities to create a system for assessing all patients at admission allowing early recognition of possible COVID-19 infection and immediate isolation of patients with suspected novel coronavirus infection in an area separate from other patients.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 2,2020

Feb 2: The Supreme court on Monday decided to hear on March 4 a plea seeking registration of FIRs against politicians for hate speeches which allegedly led to violence in the national capital.

A bench headed by Chief Justice S A Bobde agreed to hear the plea filed by riots victims.

The petition was mentioned for urgent listing by senior advocate Colin Gonsalves, appearing for the riots victims.

Gonsalves said that the Delhi High Court has deferred for four weeks the matters related to riots in the national capital despite the fact that people are still dying due to the recent violence.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.