LIVE MARKET TRACKER :   BSE SENSEX        |    NSE NIFTY    
GLOBAL MARKETS :  NASDAQ      |    FSI London      |    NIKKEI Japan  
  USD GBP EUR CAD AUD INR
USD -
GBP -
EUR -
CAD -
AUD -
INR -
Indian-Commodity  :  Economy  :  Banks may require 20% extra provisioning for 50 large NPAs: ASSOCHAM-CRISIL study

Banks may require 20% extra provisioning for 50 large NPAs: ASSOCHAM-CRISIL study (04-Aug-2017)

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL has stated that in order to absorb any losses, banks may require an incremental provisioning of 20 percent for 50 large stressed assets worth over Rs 4.3 lakh crore. These 50 large accounts are from the sectors such as construction, power and metals, among others and constitute about half of the gross non-performing assets (NPAs) of the banking sector. It also noted that while banks may have already provisioned for a part of these exposures, they need to adequately capitalise to absorb such losses which could fuel credit growth and support the next leg of economic growth.

The report titled 'IBC - Protecting stakeholders, improving ease of doing business' has said that there is a need to address various challenges such as inter-credit conflicts, ability of large corporates to delay the recovery process and burden on the National Company Law Tribunal (NCLT)/Debt Recovery Tribunal (DRT). It also said that roll-out of the ecosystem including adequate number of tribunals, insolvency professionals and information utilities, a limited timeline for the formulation of resolutions and access to the secondary market are needed in case of liquidation for successful implementation of the IBC.

ASSOCHAM-CRISIL study noted that the success of the code hinges on strengthening its ecosystem, which will help in protecting the interest of stakeholders, instilling financial discipline among borrowers and create a robust platform to attract investors. It said though the IBC is expected to face teething troubles before fully taking off, its stakeholders are expected to reap greater benefit in the long run. It added that along with banks and asset reconstruction companies (ARCs), the IBC will benefit corporates, professionals and employees, boost investor confidence, and facilitate deepening of the domestic corporate bond market.


Top News Today
Alembic Pharma gets USFDA's nod for Darifenacin Extended Tablets
(12-Dec-2017)

Alembic Pharma gets USFDAAlembic Pharmaceuticals has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Darifenacin Extended-Release Tablets, 7.5 mg and 15......click on news to read complete article.

Bajaj Hindusthan Sugar planning to issue OCDs worth Rs 3483.25 crore
(12-Dec-2017)

Bajaj Hindusthan Sugar planning to issue OCDs worth Rs 3483.25 croreBajaj Hindusthan Sugar is planning to issue Optionally Convertible Debentures (OCDs) aggregating to Rs 3483.25 crore to the Lenders of the Company upon conversion of Part - B (Unsustainable portion) of......click on news to read complete article.

Cholamandalam Invetsment planning to issue masala bonds
(12-Dec-2017)

Cholamandalam Invetsment planning to issue masala bondsCholamandalam Investment and Finance Company is planning to issue masala bonds in the nature of non-convertible debentures on a private placement basis. The meeting of the Board of Directors of the Company......click on news to read complete article.

International Stock News
US markets closed higher on Monday
(12-Dec-2017)

US markets closed higher on MondayThe US markets closed higher on Monday, with the S&P 500 index and Dow industrials closing at records on the back of a rally in telecommunications and technology shares. Wall Street shrugged off......click on news to read complete article.

Asian markets trade higher in early deals on Monday
(11-Dec-2017)

Asian markets trade higher in early deals on MondayAsian equity benchmark indices are trading higher in the early deals on Monday, lifted by encouraging employment data from the US that took the Standard & Poor's 500 Index to its third straight......click on news to read complete article.

US markets end at record highs on upbeat jobs data
(09-Dec-2017)

US markets end at record highs on upbeat jobs dataThe US markets traded with traction and ended near record high levels on Friday, as traders reacted positively to the closely watched monthly jobs report. The continued advance by stocks came following......click on news to read complete article.

 

     
  
Recent Economy News
 
EquityInvestmentCompany ReportsIPO
Disclaimer
By clicking on this page you accept all the terms and conditions framed by us. News made available here are for informational purpose only. While utmost care has been taken in providing the same. We claim no responsibility for its accuracy. Readers of this blog who make their decision based on the information posted here are solely responsible for their actions.