Banking and Financial news as per Today's Newspapers and Media 19.06.2017
Bankers are meeting from Monday to finalise their next course of action on six of the 12 bad loan accounts for immediate referral to NCLT after the RBI named the largest defaulters to face bankruptcy proceedings. According to RBI, these 12 accounts owe Rs 2.5 trillion to the system, which constitutes around 25% of gross bad loans. The troubled accounts are Bhushan Steel (Rs 44,478 crore), Essar Steel (Rs 37,284 crore), Bhusan Power and Steel (Rs 37,248 crore), Alok Industries (Rs 22,075 crore), Amtek Auto (Rs 14,074 crore) and Monnet Ispat (Rs 12,115 crore), Lanco Infra (Rs 44,364.6 crore), Electrosteel Steels (Rs 10,273.6 crore), Era Infra (Rs 10,065.4 crore) Jypaee Infratech (Rs 9,635 crore)ABG Shipyard (Rs 6,953 crore) and Jyoti Structures with a defaulted loan of Rs 5,165 crore. Since these are large accounts and involve multiple banks, the lenders will try to take a common view on all administrative requirements before referring these accounts to the NCLT and appointment of insolvency professional.
-Economic Times
Lanco Infratech Ltd confirmed that RBI had directed IDBI Bank to initiate a corporate insolvency resolution process under the country's bankruptcy laws.
-Economic Times
The finance ministry has asked 4 large PSU lenders to explore opportunities for acquisition of small and mid-sized banks with a goal to create global sized lenders, sources said. One of the possibilities is that large PSBs like PNB, BOB, Canara Bank and BOI could try looking for potential candidates for acquisition, they said. However, the clear picture would emerge only after the Niti Aayog report sets the tone and tenure of the roadmap for the second round of consolidation in the banking sector.
-Economic Times
The Maharashtra Govt will ensure with the help of a digital platform that only needy farmers benefit from its loan waiver scheme, CM Devendra Fadnavis has said. He said his dispensation took the decision in view of "the big scam" which occurred in Maharashtra after the then Govt at the Centre wrote off debts in 2008, which, he said, deprived distressed peasants of the benefits intended for them.
-Economic Times
The Central Govt has undertaken an exercise to review the service records of about 67,000 employees, including IAS and IPS officers, to identify non-performers. A senior official in the Dept of Personnel and Training said the exercise may result in punishment to those who do not conform to the code of conduct framed for them
-Economic Times
The Govt is planning an outright sale of Dredging Corporation of India (DCIL) through auction, which could fetch about Rs 1,400 crore to the exchequer. Besides, there is a proposal to sell 100% Govt holding in four unlisted companies- Kamarajar Port, HLL Lifecare, Indian Medicines & Pharmaceutical Corpn Ltd, and Karnataka Antibiotics and Pharmaceuticals Ltd. The Govt think tank Niti Aayog too has favoured disinvestment.
-Economic Times
With nearly 2 lakh jobs expected to be slashed in the IT sector in the next 2 years, all is not lost as more than 50% of the laid off employees will be re-skilled and transfered to other opportunities, a survey said. The survey was conducted by CIEL HR Services among mid to senior-level professionals in 50 IT companies.
-Economic Times
