Mineral production grows by 8 percent in February (See 'Corp Brief') SARFAESI Act - Court refrains to adjudicate matter on merits when matter is already pending in DRAT : HC (See 'Legal Desk') Coal production in April up by 7.4% (See 'Corp Brief') SEBI Act - Appellants have made case for stay as rigours of directions of SEBI order would adversely affect business of Appellant as well as their clients : SAT (See 'Legal Desk') Trade Mark Act - Marks 'BETSONE' and 'BETASON' are deceptively similar to registered trademark 'BETNESOL' and visually, phonetically and structurally alike, with minimal alterations : HC (See 'Legal Desk') Voting by tribal communities blossoms as ECI's outreach to them bears fruit (See 'Corp Brief') SARFAESI Act - No fault can be found with respondent financial institution invoking Section 14 of SARFAESI Act by approaching District Magistrate, Rewa : HC (See 'Legal Desk') Ministry of Parliamentary Affairs observes Swachhata Pakhwada (See 'Corp Brief') Arbitration Act - Arbitral award cannot be interfered with if view of arbitral tribunal is plausible one : HC (See 'Legal Desk') IBC - Asset memorandum shall not be accessible to any person during liquidation : IBBI (See 'Legal Desk') Critical Minerals Summit concludes (See 'Corp Brief') Cr.P.C. - While adjudicating on bail application court is duty bound to ensure that accused's right to life and right to health is not violated : HC (See 'Legal Desk') PMLA - Petitioner cannot claim bail as matter of right for treatment only at specialized hospital of his choice : HC (See 'Legal Desk') SEBI (Research Analysts) Regulations, 2014 for ontravention of RA Regulations Certificate of Registration of Noticee Gaurav Sarda can be cancelled : SEBI (See 'Legal Desk') REC Ltd declares financial results, records highest ever annual net profit (See 'Corp Brief') Trade Marks Act - Defendant's adoption of Trademark is not in good faith and potential confusion encroaches upon Plaintiff's statutory trademark rights : HC (See 'Legal Desk') SEBI Act - Noticee was maintaining call records which were sent to SEBI : SEBI (See 'Legal Desk') Arbitration - Petition u/s 29A for extension of mandate of Arbitral Tribunal can be filed even after mandate has expired : HC (See 'Legal Desk') Mines Ministry to hold 2-day Critical Minerals Summit (See 'Corp Brief') IBC - When one party owes debt to another and creditor is claiming under written agreement providing for rendering 'service', debt is operational debt if claim of debt has some connection with service : SC (See 'Legal Desk') Companies Act - Stamp duty @5% market value of property is liable to be paid only when property is situated within State of Madhya Pradesh otherwise not : HC (See 'Legal Desk') SEBI Act - Final opportunity of inspection of documents and cross-examination of witnesses should be given to Appellants : SAT (See 'Legal Desk') SARFAESI Act - Mere discovery of new or important matter or evidence is not a sufficient ground for review ex debito justitiae : HC (See 'Legal Desk') Conference organized on Maritime Amrit Kaal Vision 2047 (See 'Corp Brief') PMLA -Bail application can be dismissed as petitioner failed to satisfy conditions for grant of bail : HC (See 'Legal Desk') CSIR, NIScPR organize national workshop to celebrate World Intellectual Property Day (See 'Corp Brief') SEBI Act - Appellants have failed to substantiate their claim of financial distress nor have they brought any new fact or circumstances requiring grant of interim relief : SAT (See 'Legal Desk') ACC delivers lifetime highest annualised PAT (See 'Corp Brief') Trade Mark Act - Marks are visually phonetically and deceptively similar to Plaintiffs' trademarks : HC (See 'Legal Desk') SJVN inaugurates First Multi-purpose Green Hydrogen Pilot Project (See 'Corp Brief') IBC - Even if CIRP commences, Directors, who are incharge of affairs of Company cannot be absolved of any wilful default committed by borrower Company : HC (See 'Legal Desk') REC to extend loan of Rs 1869 Cr for Kiru Hydro Electric Project (See 'Corp Brief')

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Initatives to improve growth of loan portfolio & asset quality

Published: Jul 24, 2017

By TIOLCORP News Service

NEW DELHI, JULY 24, 2017: THE State Minister for Finance, Santosh Kumar Gangwar, in reply to a question in Lok Sabha yesterday stated that Reserve Bank of India (RBI) has informed that Public Sector Banks (PSBs) accounted for approximately 69% of total loans and advances by all Scheduled Commercial Banks (SCBs) and moderate growth for loan portfolio of PSBs is main reason behind low credit growth at the system level.

PSBs as a group has witnessed significant impairment in certain key industry sectors (having large exposures for PSBs) such as 'infrastructure', 'steel', 'textiles'. In wake of the higher impairment in such industry sectors, PSBs are trying to re-balance their loan portfolio.

The details on outstanding gross loans & advances as reported by SCBs to RBI are as under :-

Bank Group

31 Mar-15

31 Mar-16

31 Mar-17 (Prov.)

PSBs

56,15,793

58,23,907

58,74,849

Private Sector Banks

16,07,329

19,72,608

22,66,721

Foreign Banks

3,36,638

3,76,607

3,43,986

SCBs

75,59,760

81,73,122

84,85,556

With the enactment of 'Insolvency and Bankruptcy Code (IBC)', 2016 the recovery environment is expected to improve leading to improvement in asset quality of banks. An ordinance to amend section 35A of the Banking Regulation Act, 1949 was recently promulgated in May, 2017 enabling RBI for directing banks to resolve specific stressed assets by initiating insolvency resolution process.

RBI has given elaborate regulatory guidelines for management of asset quality in banks. A framework of Prompt Corrective Action (PCA) is also used to monitor bank's position so as to take appropriate supervisory action and the same has been revised during April-17. RBI has issued Income Recognition and Asset Classification (IRAC) norms to classify and recognize non-performing loans. RBI has provided the Indian Banking System with numerous tools to tackle stress in their asset portfolio. These tools include Scheme for Sustainable Structuring of Stressed Assets (S4A), Strategic Debt Restructuring Scheme (SDR), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Formation of Joint Lenders' Forum (JLF) for revitalizing stressed assets in the system and Corporate Debt Restructuring (CDR) Scheme etc.

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