When a bank borrower defaults, investigators and credit officers must determine how the money was used — and whether the default was wilful. Two specific terms defined by RBI in its Wilful Defaulters Directions, 2024 (effective November 1, 2024) are central to this determination: diversion of funds and siphoning of Read more…
Every credit department in an Indian public sector bank tracks one metric with extra anxiety: quick mortality. When a loan account — sanctioned after weeks of appraisal, site visits, and committee approvals — turns into a Non-Performing Asset within one year, it does not just hurt the bank’s books. It Read more…
According to BloombergQuint, in the 12 largest accounts, referred for insolvency proceedings in June 2017 as identified by RBI, there is about 40% recovery. According to data, banks have been able to recover Rs 1.16 lakh crore out of the Rs 2.96 lakh crore in claims admitted. So far, 11 Read more…
SBI MD&CEO Rajnish Kumar says that NPA for public sector banks are higher due to government-sponsored schemes and targeted lending
It seems that the bad days for the banking sector are far from over and it has been confirmed with the reply given by the Minister of State for Finance, Shiv Pratap Shukla at the Rajya Sabha. Quoting the RBI figures, he has informed the upper house that the Indian Read more…
RBI, vide notification dated 12.02.2018 issued revised framework for resolution of Stressed Assets. In this notification, RBI has withdrawn the existing schemes such as CDR, SDR, S4A, JLF etc. For exposure of Rs.2000 crores and above, Banks need to resolve the default within 180 days otherwise file application with NCLT. Read more…
Leaders of Bank Employees’ Unions have demanded that name of the top corporate willful defaulters should be published and made public immediately. One of the AIBOC leader from Kolkata said that “The Reserve Bank of India has been steadfastly refusing to divulge the names of top corporate wilful defaulters. In the Read more…
Non Performing Assets – Prudential Norms Category Treated as NPA if: Term Loan Interest and/or installment of principal remain overdue for a period of more than 90 days Overdraft/ Cash Credit (OD/CC) accounts 1) The account remains out of order continuously for 90 days. 2) Drawings are allowed on DP Read more…
Consequences of wilful default and penal measures for wilful defaulters are explained in this article. [You should consider reading Meaning of wilful defaulters and procedure for identification of wilful defaulters] What are the Penal Measures for willful defaulters? Names of wilful defaulters are made public. List of wilful defaulters is Read more…
You must have come across the term ‘Wilful Defaulter’ or if you have worked on credit desk of a bank, you should have heard ‘Wilful Defaulter List’. So, who is a wilful defaulter, where can you find wilful defaulter list and the procedure and mechanism to identify wilful defaulters is explained Read more…