npas - Latest News Update, Information, Photos & Videos on npas at Lokmat Times

"Tomorrow's PSB meeting will take up some of the key issues which relate to passing of low cost of borrowing and NPA settlement, doorstep banking and also the merger execution strategies to be taken up by the merging and anchor banks to iron out glitches," a source said.The meeting will be held under the chairmanship of Sitharaman along with banking secretary Rajeev Kumar.AThis meeting will take place after the general review meeting on follow-up action with respect to RBI rate cuts, introduce repo-rate linked loan products to step up affordable credit that will take place on the same day. One time settlement policy on NPAs will also be discussed including door step banking. Secretary, Financial services, will chair this meeting and the FM will be briefed on this meeting.Another issue on the agenda of Thursday's meeting could be one-time settlement policy on NPAs, including doorstep banking.Consolidating the 10 banks into four and converting them into 'NextGen banks', the Finance Ministry has decided to merge United Bank of India (UBI) and Oriental Bank of Commerce (OBC) with Punjab National Bank (PNB) to give birth to India's second largest public sector bank after the State Bank of India (SBI).The PNB merger, which will make the bank bigger than Bank of Baroda (BoB), will come into effect from April 1 next year. Besides PNB, Canara Bank and Syndicate Bank will also be merged into one.Union Bank of India will amalgamate with Andhra Bank and Corporation Bank while Indian Bank will merge with Allahabad Bank. The individual merging banks are also preparing ground for the merger.On Wednesdya, Indian Bank received the board approval for the merger with Allahabad Bank. Earlier on Monday, Allahabad Bank's board had also approved the merger proposal with Indian Bank, to make the amalgamated entity the seventh largest public sector lender of the country.Canara Bank board has given approval for the merger with Syndicate Bank. Canara Bank has been designated as the anchor bank in this amalgamation.From October 1 loans will be linked to external benchmarks move from the marginal cost of funds based lending rate (MCLR) regime. While most private banks are waiting for the September 30 deadline, some banks such as Citibank have already adopted external benchmarking, linking its loan products to the three-month treasury bill.Though several benchmarks are available, most banks are opting for the repo rate. This is because repo is more stable compared to other benchmark rates, which change daily. These changes are only for floating rate loans.So, while home loans and working capital loans will shift to the new regime, rates of auto loans and personal loans will remain unchanged.The RBI in July allowed domestic banks to directly sell their bad loans (NPAs) in manufacturing and infrastructure sectors to investors abroad as part of one-time settlement (OTS) exercises which will allow overseas investors to take direct loan exposure to Indian corporates.The defaulters, or stressed borrowers, can sell their assets in accordance with the OTS scheme, in order to raise external commercial borrowing (ECB) from abroad to repay domestic loans. This can ease off pressure on NPAs and can also help companies raise money on lower costs.( With inputs from IANS )

NpasFOLLOW

Npas, Latest News

Karnataka Bank on Friday reported an all-time high quarterly net profit of Rs 196 crore during Q1 of FY 2020-21 as against the previous high of Rs 175 crore during Q1 of previous fiscal. ...

Punjab National Bank reported a sudden standalone net loss of Rs 492.28 crore in the quarter ended December 31, 2019 against a profit of Rs 246.51 crore in the same period last year. ...

Green advocates on Sunday praised Union Finance Minister Nirmala Sitharaman's Budget speech towards combating air pollution along with fighting climate change and energy transition. But they were apprehensive too on several issues over the increased ...

Bajaj Finance Ltd, one of the largest players in consumer finance segment, on Wednesday reported 52 per cent jump in its consolidated profit after tax of Rs 1,614 crore in the quarter ended December 2019 (Q3 FY20). ...

The Sensex fell for the third straight day on Wednesday as investors turned cautious ahead of the Union Budget. The bearish mood on Dalal Street was also on account of weaker-than-expected quarterly results. ...

Punjab Maharashtra Cooperation (PMC) Bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years, suspended MD, Joy Thomas admitted on Friday. ...

(life) The small south-east Asian country of Laos is an untouched gem. A former French colony, its serene surroundings and biodiversity are a nature traveller's dream come true. life offers a glimpse into the wonders of Laos, that are waiting to be d ...

18 Finance Minister Nirmala Sitharaman will meet the heads of PSU banks on Thursday to discuss merger-related issues and review their preparedness to execute the process within the stated timeline of April 1, 2020. ...