Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Mumbai, Union Bank of India on Friday said it has identified eight troubled accounts worth Rs 3,000 crore to be sold to the national <keyword id="6605010" type="General" weightage="20" keywordseo="bad-bank" source="Orion">bad bank</keyword> <keyword id="11291018" type="General" weightage="20" keywordseo="narcl" source="Orion">NARCL</keyword> this fiscal. The lender has more than doubled its net income at Rs 3,236 crore in the June 2023 quarter on improved asset quality and recoveries. The city-based bank had already sold three accounts worth Rs 900 crore last fiscal to the national bad bank at a recovery of 33 per cent. We have sort of identified as many as 42 troubled accounts with an outstanding of Rs 10,000 crore to be sold to the National Asset Reconstruction Company (NARCL). Of these, we hope to sell at least eight of them to that central government-owned bad bank this fiscal, A Manimekhalai, the chief executive and managing director of the public sector lender, told reporters at the bank's post-earnings presser here. Union Bank was one of the first lenders to sell its NPAs to NARCL in the first lot of the bad bank's such transactions. The bank had recovered Rs 20,000 crore from written-offs/upgrades or one-time settlements but this year it will be around a quarter of that only, she said as the overall quantum of bad assets has fallen drastically. Of the Rs 20,000 crore, cash recovery alone was Rs 5,500 crore, which it expects to fall to Rs 4,500 crore this year. The bank's overall gross bad loan ratio is came down by 288 bps to 7.34 per cent (Rs 60,104 crore) now and net NPAs by 173 bps to 1.58 per cent (Rs 12,138 crore), and hopes to bring it further down to under-6 per cent by March, she said, adding as a result, provisions for bad loans came down to Rs 1,984 crore from Rs 3,653 crore. Manimekhalai also said the bank will be raising Rs 10,000 crore in equity capital not to buffer up its core capital base but to meet the Sebi mandate of having a 25 per cent public float. Of the planned Rs 10,000 crore capital raising, Rs 8,000 crore will be equity capital and the remaining will be tier 1 &amp; 2 capital. We are more than adequately capitalised. This fundraising is to meet the 25 per cent mandatory public float, she explained. The government currently holds an 83.49 per cent stake in the bank, which has to be brought down to 75 per cent under the Sebi's listing rules. The core capital stood at 15.95 per cent from 14.42 per cent of which CET 1 (Common Equity Tier 1) stood at 12.34 per cent from 10.68 per cent, she said. The bank's profit rose 107.7 per cent to Rs 3,236 crore from Rs 1,558 crore on a steep fall in bad loans and an improvement in interest income. The total income rose to Rs 27,381 crore from Rs 20,991 crore in the same period a year ago, of which interest income improved to Rs 23,478 crore from Rs 18,174 crore.

Union Bank to sell 8 troubled accounts worth Rs 3,000 cr to bad bank NARCL

<ul><li>SEBI is planning to tag defaulters as 'difficult to recover' if it's virtually impossible for them to pay back their loan.</li><li>The tag will also be used for individuals found be 'untraceable' and with cases in multiple courts.</li><li>The proposal will be presented at SEBI's next board meeting in the coming week.</li></ul> Capital market regulator SEBI is planning to attach a 'difficult to recover' tag for individual defaulters who are found to be 'untraceable' as also for cases facing parallel proceedings by other agencies or in various courts and tribunals. The proposal, likely to be discussed at SEBI's board meeting next week, is aimed at better utilisation of resources towards cases with higher chances of recovery, a senior official said. This separate 'difficult to recover' category is for cases where recovery of penalties and other dues from defaulters proves to be virtually impossible and the amount involved is not found to be worth an attempt beyond a point. However, SEBI can initiate or continue its prosecution proceedings against the defaulters even after such a segregation and recovery procedure can be reopened in case there is any change in the prevailing parameters regarding the defaulter. The regulator is now considering a modification to its policy on 'difficult to recover' dues to include the criteria of 'untraceable' for individuals and 'parallel proceeding barring recovery', the official said. In case of individuals, the existing policy provides for this classification for a person who has died leaving behind no assets and those who are alive but have no attachable assets or have become insolvent. However, the income tax department rules for 'difficult to recover' cases has two more categories -- individuals who are untraceable and those who have left India. The official said that SEBI did not include these categories earlier as it did not have enough data with respect to the cases involving untraceable individuals, while the final category became redundant after promulgation of the Fugitive Economic Offenders Act. However, its analysis of pending recovery cases has now shown that many cases involving untraceable individual defaulters are fit for being declared 'difficult to recover'. In case of companies, this classification applies to those having gone into liquidation or insolvency proceedings or are defunct, as also entities whose directors, promoters, partners or representatives have no attachable assets. Regarding foreign companies, this category includes those having no presence, place of business, management, representative or attachable assets in India. The Securities and Exchange Board of India (SEBI) has got powers to recover money from various entities by way of passing orders for refund of money to investors, disgorgement of funds to be distributed to investors, and also collect fees and penalties levied by it. Since getting the recovery powers in 2013, SEBI has initiated recovery proceedings against a large number of defaulters, but it has experienced difficulties during the execution of these proceedings in certain cases. According to officials, difficulties mainly arise due to the defaulter being insolvent or financially unsound without having any attachable assets, or being a company whose assets or directors/ promoters are not traceable, as also individual defaulters being untraceable. In some cases, the dues remain unrecovered even after executing all modes of recovery. Earlier, SEBI norms did not provide for declaring any unrecovered dues as 'difficult to recover' and therefore all the proceedings used to remain in force along with other recoverable cases, thus hindering optimal utilisation of resources for cases with better chances of recovery, officials said. In 2018, SEBI had formulated this policy, after taking cues from the procedure followed by the income tax department, following extensive consultations with the Finance Ministry, the Reserve Bank of India and the Corporate Affairs Ministry, but it has always been made clear that it should not be seen as "scaling down or writing off" of the dues. Out of 2,500 recovery orders passed by SEBI so far, as many as 1,790 recovery certificates were pending (at end of November 2019). Out of these, 136 were found fit to be declared 'difficult to recover', though not a single case has been put in that category as yet because the final verification of the steps are being carried out by newly appointed recovery officers prior to any such categorisation. Out of the total 1,790 pending cases, the maximum number of 1,308 cases are pending at a stage after attachments of bank, demat and mutual fund accounts as the funds or securities available are not sufficient. Also, 301 of them are 'defunct' (17 per cent) and 254 have been found to be 'untraceable' (14 per cent). Besides, the 136 cases that are fit to be treated as 'difficult to recover', as many as 97 are 'untraceable' for reasons including of failure to serve demand notice despite best efforts, non-availability of demat or bank account details, non-existence of right address and even PAN details being unavailable. Besides, SEBI is also proposing a 'difficult to recover' tag for cases facing 'parallel proceedings' before various judicial and quasi-judicial fora such as National Company Law Tribunal, special courts, debt recovery tribunals, as also cases where stay on recovery has been granted by high courts or the supreme court, or where parallel attachment has been done by agencies like ED, Tax Department, EPFIO etc. Out of the total 1,790 pending recovery cases, SEBI found that parallel proceedings were pending in 90 cases with some facing multiple litigations. In cases where insolvency and bankruptcy proceedings have commenced, SEBI has no scope of recovery as the Insolvency and Bankruptcy Code prevails over the SEBI Act. See also: <a href="https://www.businessinsider.in/you-may-earn-up-to-1-crore-with-a-tip-off-on-insider-trading-sent-to-sebi-conditions-apply/articleshow/69729976.cms">You may earn up to ₹1 crore with a tip-off on insider trading sent to SEBI — conditions apply</a> <a href="https://www.businessinsider.in/india/news/indian-stock-market-regulator-wants-to-use-ai-to-curb-manipulation/articleshow/73570976.cms">Indian stock market regulator wants to use AI to curb manipulation</a> <a href="https://www.businessinsider.in/business/news/sebi-to-hire-independent-agencies-to-dispose-of-attached-assets/articleshow/73517907.cms">SEBI to hire independent agencies to dispose of attached assets</a>

SEBI wants to tag defaulters as "difficult to recover" where recovery is virtually impossible

New Delhi, Nov 21 () Markets regulator Sebi on Thursday asked listed companies to disclose any loan default within 24 hours of any failure to repay principal or interest amount to banks or financial institutions beyond 30 days.
 The decision is aimed at addressing the gaps in the availability of information to investors, the Securities and Exchange Board of India (Sebi) said in a circular.
 The move comes just a day after the board of Sebi approved a decision in this regard.
 "To begin with, listed entities shall make disclosure of any default on loans, including revolving facilities like cash credit, from banks / financial institutions which continues beyond 30 days. Such disclosure shall be made promptly, but not later than 24 hours from the 30th day of such default," the regulator said.
 In case of unlisted debt securities such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), the disclosure shall be made within 24 hours from the occurrence of the default.
 This would be applicable from January 1, 2020.
 There have been several instances of huge loan defaults by corporates, including in cases like Infrastructure Leasing &amp; Financial Services Ltd (IL&amp;FS). In many cases, the disclosure about loan defaults were very late and share prices fell sharply.
 Currently, Sebi LODR (Listing Obligations and Disclosure Requirements) Regulations require disclosure of material events by listed entities to stock exchanges.
 Under the norms, specific disclosures are required in certain matters such as delay or default in payment of interest or principal on debt securities such as NCDs and NCRPS. However, similar disclosures are generally not made by listed entities with respect to loans from banks and financial institutions.
 The regulator noted that corporates in India are even today primarily reliant on loans from the banking sector. Many banks and financial institutions are presently under considerable stress on account of large loans to the corporate sector turning into stressed assets or non-performing assets (NPAs). Some companies have also been taken up for initiation of insolvency proceedings.
 In order to address this critical gap in the availability of information to the investor, the regulator has asked listed companies to comply with the new disclosure norms.
 "The disclosures shall be made to the stock exchanges when the entity has defaulted in payment of interest / instalment obligations on loans, including revolving facilities like cash credit, from banks / financial institutions and unlisted debt securities," Sebi said.
 Further, the regulator has defined default as non-payment of the interest or principal amount in full on the date when the debt has become due and payable (pre-agreed payment date).
 In addition, the markets watchdog has come out with a disclosure format that needs to be followed by listed companies. SP ABM
ABM

Sebi tightens disclosure norms on loan defaults for listed companies

<ul><li><keyword id="6361420" type="General" weightage="100" keywordseo="idfc" source="Orion">IDFC</keyword> First Bank announced merger of its parent IDFC Ltd with itself in an all-stock transaction. </li><li>The boards of IDFC First Bank and IDFC have approved the reverse merger.</li><li>This is the second major deal in banking space days after the amalgamation of the HDFC twins.</li></ul>Mumbai, IDFC First Bank on Monday announced merger of its parent IDFC Ltd with itself in an all-stock transaction, marking another major deal in the Indian banking space days after the amalgamation of the HDFC twins. The boards of IDFC First Bank and IDFC have approved the reverse merger. While the bank did not provide the likely valuation of the merged entity, based on Monday's closing prices of the two companies on BSE, the valuation is Rs 71,767 crore. Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each, IDFC First Bank said in a statement. The share exchange ratio will result in a premium of about 20 per cent on the closing market price of the shares of IDFC vis-a-vis IDFC First Bank as of June 30, 2023. IDFC Chairman <keyword id="137177" type="General" weightage="20" keywordseo="anil-singhvi" source="Orion">Anil Singhvi</keyword> said the merger is the last phase of IDFC's corporate restructuring and will help create a financial services provider that offers seamless delivery of services to customers. It will augment operational efficiency for the merged entity and create synergies for our shareholders. Post the merger, the standalone book value per share of the bank will increase by 4.9 per cent, as calculated on the audited financials as of March 2023, it said, adding as of June 2023, IDFC through its non-financial holding company, owned 39.93 per cent in IDFC First Bank. IDFC First Bank's market capitalisation stood at Rs 54,311.48 crore at close today, after the stock rallied 3.2 per cent to Rs 81.94 on the BSE, while IDFC mcap stood at Rs 17,456 crore after its counter rallied 6.3 per cent to Rs 109.10, taking the combined value to Rs 71,767 crore. IDFC was an infra lender in the private sector space, and following its bigger peers like ICICI and IDBI, it also launched a banking subsidiary in 2015 -- IDFC Bank -- but could not make a mark as the other two could do. Effective July 1, India Inc's biggest merger came into effect when the mortgage major HDFC merged itself with its banking arm in an all-stock deal valued at USD 40 billion. Post-merger, announced on April 4, 2022, HDFC Bank is the world's fourth most valued bank with USD 200 billion in valuation after JP Morgan Chase, ICBC of China and Bank of America. The new giant, fully owned by public shareholders with no promoter entity, has a balance sheet of close to Rs 33 lakh crore, with the assets alone sniffing at Rs 23 lakh crore and also the largest mortgage book with close to Rs 7 lakh crore of loans. The merger will lead to simplification of the corporate structure of both entities by consolidating them and other subsidiaries into a single entity, helping streamline regulatory compliances, the companies said in separate but identical statements. Like HDFC Bank, the merged IDFC First Bank will also have no promoter entity, but fully owned by institutional and public shareholders. The merger scheme is subject to all requisite approvals from the Reserve Bank, Sebi, Competition Commission, National Company Law Tribunal and stock exchanges, and shareholders of both entities. IDFC began as an infra lender in 1997. It got in-principle approval from the RBI to set up a bank in April 2014, and in October 2015, it launched IDFC Bank when on-tap licensing began, following which loans and liabilities of IDFC were transferred to the bank. In December 2018, it took over Capital First, a consumer and MSME-focused non-bank since 2012, and was renamed as IDFC First Bank and became a full-service universal bank. Since the merger, the bank built a deposit franchise that has grown 36 per cent annually since then, and has reached Rs 1,36,812 crore as of March 2023. The bank has also increased its low-cost CASA ratio from 8.6 at the merger with Capital First to 49.77 per cent as of March 2023. The bank has 809 branches and runs 925 ATMs. Its loan book stood at Rs 1,60,599 crore with a balance sheet of Rs 2,39,942 crore as of March 2023. The bank closed FY23 with a net income of Rs 2,437 crore, and its capital adequacy ratio stood at 16.82 per cent. Its gross NPAs stood at 1.65 per cent and net NPA at 0.55 per cent. Overall gross NPAs, including legacy infrastructure financing book, is 2.51 per cent, and net NPA is 0.86 per cent. "We now embark on the next phase of our growth journey towards our long-term vision, and the merger will create sustainable shareholder value in the years to come," said Sanjeeb Chaudhuri, the chairman of IDFC First Bank. In a separate statement, IDFC also said its board approved the reverse merger with the bank, and said the composite scheme of amalgamation includes the merger of IDFC and IDFC Financial Holding Company with IDFC First Bank. IDFC First Bank MD V Vaidyanathan said: "We have built a strong deposit franchise, digital innovation, customer-friendly products, strong capital buffer, growing profitability and high corporate governance".

IDFC to merge with its banking arm in all-stock deal

New Delhi, Nov 19 () Central Bank of India has reported an increased net loss of Rs 6,430.48 crore for 2018-19 due to NPA divergence after assessment of higher bad loans by the Reserve Bank.
 The net NPA divergence -- the difference between the NPAs reported by the bank and that assessed by the RBI -- was at Rs 2,565 crore for 2018-19.
 Central Bank of India had reported a net loss of Rs 5,641.48 crore in 2018-19 earlier.
 "The adjusted (notional) net profit after tax for the year ended March 31, 2019 after taking into account the divergence in provisioning is (-) Rs 6,430.48 crore," the bank said in a regulatory filing.
 Banks are required to report divergences in their asset classification and provisioning as per Sebi guidelines issued on October 31, 2019.
 The bank had reported Rs 11,333.24 crore net NPAs during the year while the RBI assessed it at Rs 13,898.24 crore, leaving a gap of Rs 2,565 crore.
 The divergence in provisioning also increased by Rs 788 crore for the fiscal ended March 2019.
 Market regulator Sebi has put in place tighter disclosure norms, directing all listed banks to disclose any divergence in bad loan provisioning within 24 hours of receiving RBI's risk assessment report, rather than waiting to publish the details in their annual financial statements.
 Banks, including Indian Bank, Union Bank of India, Bank of India, Indian Overseas Bank and Lakshmi Vilas Bank, have already reported their NPA divergences for the last fiscal.
 The disclosures need to be made in case the banks' additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies, and if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs. KPM MR

Central Bank of India reports higher Rs 6,430cr loss for FY19 due to NPA divergence

New Delhi, Dec 14 () Public sector lender Punjab National Bank (PNB) under-reported its non-performing assets by Rs 2,617 crore for the fiscal year 2018-19, as per RBI's risk-assessment report.
 In a regulatory filing on Saturday, PNB said the divergence in gross non-performing assets (NPAs) assessed by the central bank stood at Rs 2,617 crore in FY19.
 The divergence assessed by the RBI in net NPAs was also Rs 2,617 crore for the fiscal.
 Also, the divergence in provisioning for bad loans in FY19 was to the tune of Rs 2,091 crore.
 Consequently, based on the divergence assessed by RBI in provisioning for bad loans, PNB said it would have reported a net loss of Rs 11,335.90 crore for FY19 as opposed to a net loss of Rs 9,975.49 crore.
 The bank said it reported gross NPAs of Rs 78,472.70 crore, while as per RBI's assessment the figure was Rs 81,089.70 crore.
 Similarly, it reported net NPAs of Rs 30,037.66 crore, compared to RBI's assessment of Rs 32,654.66 crore.
 Provisions for NPAs made by the bank in FY19 stood at Rs 48151.15 crore but it needed to provide Rs 50,242.15 crore.
 Recently, market regulator Sebi made it mandatory for listed banks to disclose bad loan divergence within a day of receiving the risk assessment report from the RBI. KKS ABM

PNB under-reported bad loans by Rs 2,617 cr in FY19: RBI report

New Delhi, Nov 19 () Yes Bank on Tuesday reported a lower net profit of Rs 1,084.03 crore for 2018-19 compared to Rs 1,720.28 crore announced earlier due to higher non-performing assets assessed by the Reserve Bank.
 The divergence in net non-performing assets (NPAs) of the bank --the difference in bad loans reported by the bank and the assessment done by the RBI -- stood at Rs 2,299 crore for 2018-19, Yes Bank said in a regulatory filing.
 The private sector lender had reported a net profit of Rs 1,720.28 crore in 2018-19.
 "The adjusted (notional) net profit after tax for the year ended March 31, 2019 after taking into account the divergence in provisioning was at Rs 1,084.03 crore," it said.
 The divergence in provisioning was at Rs 978 crore.
 Additionally, the bank said that it intends to convene a meeting of its board of directors by the end of this month to finalise its capital raise.
 Market regulator Sebi has put in place tighter disclosure norms, directing all listed banks to disclose any divergence in bad loan provisioning within 24 hours of receiving RBI's risk assessment report, rather than waiting to publish the details in their annual financial statements.
 Banks, including Indian Bank, Union Bank of India, Bank of India, Indian Overseas Bank, Central Bank of India and Lakshmi Vilas Bank, have already reported their NPA divergences for last fiscal.
 The disclosures need to be made in case the banks' additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies, and if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs. KPM BAL MR
MR

Yes Bank posts lower net profit for FY19 due to NPA divergence

New Delhi, Feb 14 () Private sector lender Lakshmi Vilas Bank, which is under the RBI's prompt corrective action (PCA), on Friday said its net loss has narrowed to Rs 334.48 crore during the third quarter ended December 2019. The bank had a net loss of Rs 373.49 crore in the corresponding quarter of 2018-19. Sequentially also, the losses were down from Rs 357.16 crore in the second quarter ended September 2019. Its total income fell sharply to Rs 585.77 crore during the December 2019 quarter as compared with Rs 762.48 crore a year ago, as the lender has also been directed to restrict lending to corporates. "The Reserve Bank of lndia (RBI) has initiated prompt corrective action vide letter dated September 27, 2019. Certain actions have been prescribed, such as bringing in additional capital, restricting further lending to corporates, reducing NPAs and improving the provision coverage ratio to 70 per cent. "The bank is obliged to carry out the actions prescribed by the RBI," Lakshmi Vilas Bank said in a regulatory filing. The bank has come under the PCA due to high level of bad loans, lack of sufficient capital to manage risks, and negative return on assets for two consecutive years. The return on assets (RoAs) in the third quarter of 2019-20 worsened to (-) Rs 4.40 as compared with (-) Rs 3.90 in year-ago quarter. On the asset quality front, the bank suffered a beating with the gross non-performing assets (NPAs) surging to 23.27 per cent of the gross advances at the end of December 2019 from 13.95 per cent in the corresponding period of 2018-19. In absolute terms, gross NPAs rose to Rs 4,081.06 crore from Rs 3,364.27 crore. Net NPAs were 9.81 per cent (Rs 1,463.93 crore) as against 7.64 per cent (Rs 1,716.22 crore). The bank said it made provisioning for NPAs, including of diminution value of all restructured accounts, of Rs 290.04 crore for the December 2019 quarter, compared with Rs 313.76 crore a year ago. The overall provisions and contingencies were of Rs 314.62 crore as against Rs 413 crore. With regard to the ongoing case in the Delhi High Court against Religare group companies for extending loans up to Rs 794 crore in 2017-18, Lakshmi Vilas Bank said that "the bank holds a contingent provision of Rs 200 crore as on December 31, 2019, on this score". "Further to this, the bank has submitted replies to the clarifications sought by Sebi. EOW (Economic Offence Wing), Delhi, has registered FIR against Directors of Board, LVB, RHC Holding and Directors on the Board of RHC Holding and the investigation is in progress. "The bank has sent a detailed letter to EOW explaining its stand on the issue and assured to extend full co-operation in the investigation," it said. The provision coverage ratio as on December 31, 2019, stood at 68.70 per cent. Shares of LVB on Friday closed 4.77 per cent down at Rs 18.95 on the BSE. KPM HRS

Lakshmi Vilas Bank net loss narrows to Rs 334 cr in Dec quarter

New Delhi, Nov 15 () Finance Minister Nirmala Sitharaman on Friday said four real estate companies from three cities, Mumbai, Bengaluru and Hyderabad, have approached to avail Rs 25,000 crore bailout fund.
 More companies are likely to approach the nodal agency for taking benefit of this window from next week, she said.
 Earlier this month, the government approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared NPAs or admitted for insolvency proceedings in a bid to boost growth by steering consumption in real estate and associated sectors.
 The Alternative Investment Fund (AIF) comprises of Rs 10,000 crore coming from the government and the remaining being provided by state insurer LIC and the country's largest lender SBI.
 The fund, to be set up as Category-II AIF registered with SEBI, will be managed by SBICAP Ventures Limited.
 The AIF, which was first announced by the Finance Minister on September 14, will act as a 'special window' to provide loans to over 1,600 incomplete affordable and middle-lower income housing projects.
 She further said that she will be holding a meeting with banks next week to assess their lending to the NBFC sector.
 The ministry will seek disaggregated data on how much funds have been given to AAA-rated NBFCs and NFBCs rated below AAA and also seek details from RBI and PSU Banks on funds given to AAA-rated NBFCs, investment-grade NBFCs, she added. DP DP MR
MR

4 real estate cos from three cities requests to avail bailout fund: FM

New Delhi, Dec 10 () The country's largest lender State Bank of India (SBI) on Tuesday reported about Rs 12,000 crore divergence in their bad loans for the last fiscal.
As per the assessment done by the RBI, the gross NPA of the SBI was 11,932 crore more at Rs 1,84,682 as against Rs 1,72,750 reported by the bank for 2018-19, SBI said in a regulatory filing.
Similarly, the net NPA was 77,827 crore as compared to disclosed figure of Rs 65,895 crore, reflecting divergence of Rs 11,932 crore, it said.
As a result the bank has to make additional provisioning of Rs 12,036 crore in the balancesheet and the notional loss would have been at Rs 6,968 crore.
SBI had posted a profit of Rs 862 crore for 2018-19 in May this year.
It further said after subsequent slippage or upgradation during the current financial year, the remaining impact on the gross NPAs during the third quarter of current fiscal is Rs 3,143 core.
The impact on provisioning during the third quarter stood at Rs 4,654 crore, it added.
In recent months, there have been several instances of under-reporting of bad loans by lenders, prompting regulatory action by the Reserve Bank of India.
Last month, SBI in a circular noted that disclosures in respect of divergence and provisioning are in the nature of material events and hence necessitate immediate disclosure. Further, this information is also price sensitive, requiring prompt disclosure by a listed entity.
Accordingly, the regulator has decided that "listed banks shall make disclosures of divergences and provisioning beyond specified threshold, as mentioned in aforesaid RBI notifications, as soon as reasonably possible and not later than 24 hours upon receipt of the Reserve Bank's Final Risk Assessment Report (RAR), rather than waiting to publish them as part of annual financial statements". 
 The SBI has reported the loan divergence to the exchanges, as per the direction of market regulator Securities and Exchange Board of India (Sebi). DP DP BAL
BAL

SBI reports loan divergence of Rs 11,932 cr for FY19

(Eds: Adding details) New Delhi, May 1 () IDFC First Bank on Friday said it will raise a fresh equity capital of Rs 2,000 crore from investors, including its promoter and a Warburg Pincus firm. The decision was taken on Friday at the meeting of its board, which approved to issue 86.24 crore shares on a preferential basis to ICICI Prudential Life Insurance Company, HDFC Life Insurance Company, Bajaj Allianz Life Insurance, Dayside Investment (Warburg Pincus group entity), and to its promoter IDFC Financial Holding Company Ltd, the bank said in a regulatory filing. Under the fundraising, the equity shares will be issued at Rs 23.19 apiece to the existing and new investors, subject to shareholders' nod and other approvals. "The bank will use this capital to power growth, to continue to invest in liabilities and asset franchise, technology and infrastructure platforms to expand reach, product suite and to improve customer experience," it said in a release. Under this fresh fundraising, qualifying for common equity tier 1 or CET1, the bank will get Rs 800 crore from its promoter IDFC Financial Holding Company Ltd, while Rs 600 crore will be infused by ICICI Prudential Life Insurance Company. HDFC Life Insurance Company, Bajaj Allianz Life Insurance Ltd and the US-based private equity fund Warburg Pincus group-affiliate Dayside Investment Ltd will pump in Rs 200 crore each into the bank. The promoter will acquire 34,49,76,282 shares and ICICI Prudential Life 25,87,32,212 units, while the rest of the three investors will buy 8,62,44,070 shares each. The private sector lender said the new capital infusion will strengthen its capital adequacy to 15.5 per cent with CET 1 ratio at 15.3 per cent (calculated on December 31, 2019, base of 13.28 per cent, substantially higher than the regulatory requirements). This will enable the bank to accelerate growth of its deposit and asset franchise, it added. V Vaidyanathan, managing director and chief executive officer, IDFC First Bank, said, "Within one year after merger (of Capital First), the bank has made strong progress across all strategic priorities and set a strong foundation for growth. The new fund with strong capital adequacy will enable us to continue to power up growth in the chosen areas. It also empowers us to navigate current market uncertainties from a position of strength." He said that in one year of merging Capital First with itself, the bank's retail lending grew 32 per cent year-on-year and retail deposits were up 157 per cent year-on-year. The merger took place in December 2018. The bank's net interest margin (NIM) increased sharply to 3.86 per cent in the third quarter of 2019-20 ended December 2019 and is expected to continue rising. The bank has built strong intellectual property in its business in a focussed manner and the opportunities for growth for the lender are unlimited, Vaidyanathan said. Having recently been rated 'FAAA' by rating agency Crisil for its fixed deposit programme of Rs 50,000 crore -- the highest safety rating by Crisil in this category, he said that with the new equity capital raise, the position is further strengthened and will help the bank raise more retail current account-saving account (CASA) and retail deposits and thereby reduce the overall cost of funds for the bank. During the fourth quarter ended March 2020, retail assets increased 32.4 per cent year-on-year to Rs 54,027 crore, it said. The lender's retail loan book as a proportion of total loans grew from 10 per cent as of March 2018 (pre-merger) to 60 per cent as on March 31, 2020, (including retail priority sector lending) and is running ahead of the 5-year guidance of 70 per cent given at the time of merger. The bank has reported strong retail asset quality with gross non-performing assets (NPA) at 2.26 per cent of the gross advances and net NPAs at 1.06 per cent at the end of the December 2019 quarter. IDFC First Bank said Dayside Investments Ltd along with Cloverdell Investment Ltd --both Warburg Pincus LLC Group entities -- together holds 47,72,64,867 equity shares, constituting 9.92 per cent of the pre-issue shareholding and 56,35,08,937 equity shares constituting 9.93 per cent of the post-issue shareholding of the bank. The total number of the bank's paid-up equity shares will be 567,23,43,720 after the issue, it said. "The net worth of the bank post the issue and as added to the net worth as of December 31, 2019, will be Rs 17,240 crore," IDFC First Bank said. The lender said the said preferential allotment shall be subject to approval of the members of the bank proposed to be sought through postal ballot by way of 'Remote E-Voting' in terms of the applicable circulars recently issued by MCA (April 2020) in view of the current extraordinary circumstances due to the COVID-19 pandemic requiring social distancing and also in accordance with relevant Sebi norms. KPM HRS

IDFC First Bank to raise Rs 2,000 cr capital from promoter, Warburg Pincus, 3 others

<ul><li>Credit Suisse estimates that Indian banks will shore up $20 billion in capital to meet the demands of their debt.</li><li>Kotak Mahindra Bank already on the ball with a QIP worth ₹7,100 crore ($940 million) announced today.</li><li>Axis Bank is also reportedly in talks with Carlyle to raise $1 billion in funding.</li></ul>Unwilling to take risks and facing rating downgrades, India’s banks, including the biggest State Bank of India (SBI), and private lenders like Axis Bank, are on the hunt for fresh capital. However, most of it will go into filling up a massive hole left by bad loans. For other non-banking firms in the financial sector, refinancing isn’t going to come easy. Credit Suisse estimated that Indian banks will need to shore up nearly $20 billion in capital to hedge against upcoming risks as the coronavirus pandemic continues to bear heavily on the economy. More than half of the requirement, an estimated $13 billion, is going be from public sector banks, according to the investment bank. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596155/?utm_source=embed&utm_campaign=visualisation/2596155' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> “We estimate that 70% of the Indian financial system’s lending capacity is now constrained,” the report said estimating that 25% of the credit lies with public sector banks — excluding the State Bank of India (SBI) — are is yet to be free of the prior burden of non-performing assets (NPAs). Banks need money to repay about $2.9 billion worth bonds that are up for repayment in the next 12 months. “We estimate ₹2.5 trillion ($33 million) of debt is already downgraded to ratings that are likely to make refinancing challenging,” the financial services company said in its report. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596276/?utm_source=embed&utm_campaign=visualisation/2596276' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Kotak Mahindra Bank launches its QIP Kotak Mahindra Bank is already on the ball with the launch of its ₹7,100 crore ($940 million) qualified institutional placement (<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/c2ab6c3e-ef08-4347-9281-422fd21c483b.pdf">QIP</a>). This allows the private lender to raise capital from domestic markets without the need to submit at pre-issue filings with the market regulator, the Securities and Exchange Board of India (SEBI). The equity shares will be issued at a discount of 5% on the floor price, which is close to ₹1,148 per share. Kotak Mahindra Bank's share price rallied by more than 5% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596375/?utm_source=embed&utm_campaign=visualisation/2596375' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Axis Bank is looking to raise $1 billion Another private player, Axis Bank, is also looking to raise $1 billion to private equity firm Carlyle, according to <a href="https://economictimes.indiatimes.com/markets/stocks/news/axis-bank-board-to-meet-on-apr-25-to-consider-fundraising/articleshow/68598582.cms?from=mdr">PTI</a>. “The brass seems to be warming up to the idea of another deep-pocket marquee investor in recent weeks,” a source told the publication. An investment of this size will be that Carlyle will own between 5% to 8% stake in Axis Bank. Its share price jumped by over 13% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596439/?utm_source=embed&utm_campaign=visualisation/2596439' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> IndusInd Bank’s Hinduja family wants to raise its stake Simultaneously, IndusInd Bank is reportedly in talks with Japan’s Nippon Life to battle the growing threat of bad loans and ratings downgrades. Like Uday Kotak, the owners of IndusInd Bank — the Hinduja family — is also looking to <a href="https://www.livemint.com/companies/news/indusind-bank-clarifies-on-fund-raising-reports-11585905610222.html">increase their stake</a> to 26% instead of the RBI’s mandated 15% in this time of crisis. Following in the steps of other banks, IndusInd Bank's share price was up by 5.8% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596481/?utm_source=embed&utm_campaign=visualisation/2596481' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Smaller players like RBL Bank, AU Small Finance Bank, IDFC First, Yes Banks and others are also looking to go down the QIP-route for undisclosed amounts to raise capital and shore up their balance sheets. They account for 8% of the credit in the Indian financial system and have been bearing the brunt of deposit outflows and liquidity constraints, according to Credit Suisse. It’s not just banks Banks are only a part of the liquidity crunch in the economy. Non-banking financing companies (NBFCs) have been pulling back on credit since the IL&amp;FS crisis of 2018. And, with mutual funds now frowning upon investing in NBFCs, they now have limited access to funding from the domestic debt market, according to Credit Suisse. “Asset Liability Management (ALM) challenges for NBFCs are turning more severe with access to funding differentiated and a 6-month moratorium on 30% to 70% of loans,” said the report. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596549/?utm_source=embed&utm_campaign=visualisation/2596549' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Even though the Indian government announced multiple measures to try and help the sector, the benefits are likely to be limited. “The government has announced a ₹300 billion special liquidity window for purchasing the securities of NBFCs. However, the scheme is for short-term paper, and available to investment grade entities, which impacts its effectiveness,” said Credit Suisse. “Our analysis shows that around ₹640 billion of borrowings for 'AA'-and-below-rated NBFCs are coming up for refinancing from April to December 2020,” it added, pointing out that sell-downs and external commercial borrowings (ECBs) are now the key avenues for them to meet their refinancing needs. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-may-not-be-done-selling-stake-in-jio-even-after-one-sixth-of-the-telco-is-already-out-of-his-hands/articleshow/75892898.cms">Mukesh Ambani may not be done selling stake in Jio even after one-sixth of the telco is already out of his hands</a> <a href="https://www.businessinsider.in/business/corporates/news/airtel-share-price-target-as-africa-unit-nears-a-billion-dollars-in-revenue/articleshow/75970641.cms">Airtel’s Africa unit is now a nearly-billion dollar business where every user pays 40% more than the one in India</a> <a href="https://www.businessinsider.in/tech/enterprise/news/three-ways-tcs-infosys-and-other-it-giants-in-india-are-trying-to-cut-costs-but-its-not-going-to-increase-their-profitability/articleshow/76021884.cms">Three ways TCS, Infosys and other IT giants in India are trying to cut costs — but it’s not going to increase their profitability</a>

Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes

Thanks to India’s mining sector companies whose projects are stalled or faltering, total bad loans, called non-performing assets, of listed banks had reached a staggering Rs.4.85 lakh cr. With bad loans piling up in Indian Banks, the blame is on lax regulation at both the clearance level and the credit giving agency level. 
 
As per a news report by The Times of India, the Centre for Science &amp; Environment (CSE) has confirmed between 2007 and 2014 "almost all environmental clearance applications were cleared" while "94 percent of proposals seeking forest clearance were approved, yet the lax regulation at both the clearance level and the credit level prevented the smooth flow. 
Infrastructure, iron and steel, mining, textiles and aviation had 52% of total stressed advances (NPAs and restructured loans) of all scheduled banks, according to Reserve Bank's Fiscal Stability Report of December 2014. Within infrastructure, electricity, oil and gas constituted around 58%, transport 21% and telecommunications around 10%. 
 
India's regulatory framework for natural resources - minerals, land, forests and environment - is "unpredictable, arbitrary and irrational" the RRI report says. Projects are sanctioned on a case to case basis without reference to the larger picture, final decisions are in the hands of a small group of bureaucrats, there is no transparency and accountability, regulators have little access to objective information and the impact on people is very cursorily assessed. 
 
In a similar analysis of the financial regulatory system, the RRI report says that the RBI does not regulate due diligence by banks beyond forbidding loans purely for land acquisition. There is no explicit requirement from SEBI to disclose regulatory compliance or the status of clearances, the report says. 
 
A senior officer of a major public sector bank told TOI on condition of anonymity that although theoretically everything should be final before the loan disbursement starts, in practice, initial disbursement starts even as the regulatory approvals or land acquisition process is continuing. "This happens because the promoters usually convince the lead bank at the highest level that everything is on course," he said. 
 
The consequences of this lending spree are cronyism, fixing and regulatory arbitrage, the RRI report says. A CAG audit of land acquisition in Odisha found that the State Industrial Development Corporation illegally permitted companies to mortgage 46,533 acres of publicly acquired land. It was found that out of 89 memoranda of understanding signed by the State government only two had started production. A similar audit in Rajasthan had found that only 30% of over 72,000 acres land that was acquired was actually being used. Another audit of SEZs revealed that 11 developers in four states had raised Rs.63 lakh cr by mortgaging their SEZ lands, 35 percent of which was diverted to non-SEZ purposes. In Chhattisgarh, an ET report had revealed that just 15 out of 60 private power projects were ever going to start. Most companies were looking for buyers of land. 
 
(Image: Reuters)

You Searched For "SEBI NPAs" and got 13 results