Trade Marks Act, 1999 - Use of word DISH is not generic to trade of DTH services and its part use by Doordarshan for its DD FREE DISH is not protected by section 17 : HC (See 'Legal Desk') IBC, 2016 - Pendency of criminal trial against officials of YES BANK filed by shareholder of corporate debtor is not sufficient ground to dismiss application u/s 7 - NO: NCLAT (See 'Legal Desk') Amendments in Companies Act - IBC time span hiked to 270 days; Unspent money to be transferred to National CSR Fund (See 'Corpbrief') GST - Fake Invoices - Mega Hole in Treasury; Time for Punitive Legislative Measures! (See 'THE COB(WEB)' in TIOL) Cabinet okays extension of XV Fin Com's term till Nov 30, 2019 Cabinet okays amendment to IBC; bankruptcy resolution allowed maximum 330 days Wipro records 12.6% rise in Q1 profits at Rs 2388 C Yes Bank Q1 profits slump 91% at Rs 114 Cr Only 407 tariff lines restricted for import: Puri (See 'Corpbrief') National policy on retail trade in pipeline: MoS (See 'Corpbrief') Closure of pharma PSUs - Cabinet approves amendment in norms for sale of land (See 'Corpbrief') Modification of circular; Format for compliance report on Corporate Governance to be submitted to Stock Exchange (s) by Listed Entities (See 'Dashboard') Copyright Act -Copying of content including photographs and images from one domain name to other warrants grant of permanent injunction in favour of original proprietor specially in pharmaceuticals business : HC (See 'Legal Desk') Trade Marks Act, 1999 - Part use of word MAX in respect of MAXCURE healthcare services which by prior use is commonly associated with MAX hospitals is non distinctive and hence not protected by partial immunity granted u/s 17 : HC (See 'Legal Desk') HDFC AMC Q1 net profit rises by 42% Govt slashes interest rate on General Provident Fund Commercial vehicles worst hit in auto industry slowdown MCA seeks InterGlobes's response on Gangwal's charges of corporate governance lapses KVIC bags Rs 7 Cr order from Oil India Ltd (See 'Corp Brief') Raksha Mantri's Awards for Excellence - Private players now eligible for prize (See 'Corp Brief') India, UK ready to deepen trade relations post Brexit: Goyal (See 'Corpbrief') Patent Act, 1970 - Formation of opinion on three elements of injunction must be discernible from language of interim order in pharma patent case: HC (See 'Legal Desk') Various measures taken to ease textile sector's issues: Gadkari (See 'Corpbrief') Sahibganj MMT to open up sea trade for Bihar & Jharkhand: MoS (See 'Corprbrief') CAG's Audit Report on Entertainment Sector - An Overview (See 'THE TOG INSIGHT' in SARFAESI Act - No proposal for further amendment: Thakur (See 'Corpbrief' ) Mutual funds - 47 warning letters issued this fiscal for non-compliance: MoS (See 'Corpbrief') Arbitration and Conciliation Act, 1996 - Govt does not get differential treatment under Order XXVII of CPC whenever application for stay of arbitral award is filed u/s 36 and provision of CPC does not override the special purpose for which Arbitration Act is enacted : SC (See 'Legal Desk') OMCs issued Letter of Intent for 344 plants for production & supply of Compressed Bio Gas till June 2019: Pradhan Shipping Ministry's Sagarmala project created over 10000 jobs in 3 years: MoS

PSBs' gross NPA dropped by over Rs 106032 Cr this fiscal: Thakur

Published: Jul 09, 2019


NEW DELHI, JULY 09, 2019: THE Union MoS for Finance & Corporate Affairs, Mr Anurag Singh Thakur, today in Parliament stated that as per inputs received from Public Sector Banks (PSBs), valuation reports are obtained from banks' empanelled valuers and banks do not follow a practice of obtaining valuation reports from practising member of the Institute of Chartered Accountants of India (ICAI).

As per inputs received from PSBs, till March 31, 2019, resolution plans have been approved in 68 cases by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC). The total resolution amount approved in these cases was Rs 65,320 crore. Provision held by PSBs in these cases was Rs 33,556 crore as on March 31, 2019. PSBs provided for an additional amount of Rs 21,727 crore, which amounts to 18.02% of the principal outstanding in these accounts.

Moreover, as per inputs received from PSBs, as on March 31, 2019, FIRs have been filed against 3,154 wilful defaulters. To strengthen PSBs, Government has implemented a comprehensive 4R's strategy consisting of recognition of NPAs transparently, resolution and recovering value from stressed accounts, recapitalising PSBs, and reforms in PSBs and financial ecosystem to ensure a responsible and clean system. Steps taken under these strategies include -

(i) Change in credit culture was effected, with the IBC fundamentally changing the creditor-borrower relationship, taking away control of the defaulting company from promoters/owners and debarring wilful defaulters from the resolution process and debarring them from raising funds from the market.

(ii) Over the last four financial years, PSBs were recapitalised to the extent of Rs. 3.12 lakh crore, with infusion of Rs. 2.46 lakh crore by the Government and mobilisation of over Rs. 0.66 lakh crore by PSBs themselves.

(iii) Key reforms were instituted in PSBs as part of PSBs Reforms Agenda, which include -

a) Board-approved Loan Policies of PSBs now mandate tying up necessary clearances/approvals and linkages before disbursement, scrutiny of group balance-sheet and ring-fencing of cash flows, non-fund and tail risk appraisal in project financing.

b) Use of third-party data sources for comprehensive due diligence across data sources has been instituted, thus mitigating risk on account of misrepresentation and fraud.

c) Monitoring has been strictly segregated from sanctioning roles in high-value loans, and specialised monitoring agencies combining financial and domain knowledge have been deployed for effective monitoring of loans above Rs. 250 crore.

d) To ensure timely and better realisation in one-time settlements (OTSs), online end-to-end OTS platforms have been set up.

Gains to PSBs are amply visible in their growing financial strength. As per RBI data on global operations (including provisional data for March 2019, as reported on July 02, 2019), gross NPAs of PSBs have reduced over the last financial year by Rs 1,06,032 crore, record recovery of Rs 3,09,568 crore has been effected over the last four financial years (excluding recovery in IDBI Bank Limited made during 2018-19), and domestic credit growth has risen to 10.20% during financial year 2018-19.

Growing strength of PSBs is also evident from the fact that all PSBs meet minimum regulatory capital requirement, 6 PSBs are now out of PCA restrictions, balance-sheets of PSBs have been cleaned up through transparent recognition of NPAs and their provision coverage ratio is at its highest level in seven years, and asset quality has improved sharply.