PSBs, foreign banks hit by bad loans: RBI

Nov 11 2012, 15:04 IST
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SummaryNon-performing assets of public sector banks rose to Rs 1,11,664 crore in 2012 from Rs 52,807 crore in 2003, data from the Reserve Bank of India said.

on real-time basis and warned of punitive measures in case of failures, including penalties.

The directive comes at a time when banks are seeing a surge in corporate debt restructuring cases and bad loans.

The RBI on October 30 had asked banks to set aside more money for every standard restructured loan - from 2 per cent in the past to 2.75 per cent.

So far in 2012, the number of loan recasts rose to 101 cases, according to information available with the CDR cell.

The CDR cases include the Rs 31,000 crore of Air India and Rs 1.9 lakh crore of state-run discoms.

Till September, banks restructured loans worth Rs 2.5 lakh crore, out of which as much Rs 1.6 lakh crore worth loans were restructured under the corporate debt restructuring (CDR) scheme.

The number of CDR cases since the beginning of this year crossed the century-mark as on September 30, involving a collective debt amount of close to Rs 64,000 crore, as per the data available with the CDR cell of bankers.

Besides, 51 more cases, worth Rs 45,000 crore, have been approved for recast at the end of September quarter.

The CDR cell was set in 2001 to help corporates facing financial difficulties due to "factors beyond their control and due to certain internal reasons."

As per the latest data available with the CDR cell, a total of 466 cases, involving total debt of Rs 2.46 lakh crore , have been referred to it since its inception.

During the first half of the fiscal, as many as 74 cases worth about Rs 40,000 crore were referred to the CDR cell-the highest ever so far.

In the entire last fiscal, there were 87 CDR cases with an aggregate debt of about Rs 68,000 crore referred for CDR.

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