FROM CENTRAL BANK OF INDIA S.Ravichandran
|
|
- Maurice Homer Daniel
- 5 years ago
- Views:
Transcription
1 FROM CENTRAL BANK OF INDIA S.Ravichandran
2 ECONOMIC VENTURES AND LENDERS CORPORATE PERSPECTIVE- PROFIT LIQUIDITY- SUSTENANCE AND SUSTAINABLE BANKERS/ LENDERS PERSPECTIVE GOODWILL AND COMMERCIAL ISSUES SUSTAINED FUTURE ECONOMIC BENEFITS LONG TERM LIQUIDITY SOLVENCY OF THE CORPORATE
3 FACTORS IMPAIRING ASSET QUALITY MANAGING RISKS ASSOCIATED IMPAIRMENT IN LONG TERM COMMERCIAL VIABILITY CHANGE IN SCOPE AND SIZE OF A VENTURE MIDWAY THROUGH IMPLEMENTATION TIME AND COST OVERRUN NOT MANAGED TRY TO LEVERAGE FOR MORE DEBT DESPITE BEING AWARE OF THE THRESHOLD OF ECONOMIC LOSS
4 WHAT IS BANKER S PERSPECTIVE ON ASSET QUALITY? BILATERAL COMMERCIAL DECISION BETWEEN BANK AND BORROWER SUSTAINED LONG TERM VIABILITY AND CASH GENERATION EXPECTS BORROWER TO ADEHERE TO THE TERMS AND CONDITONS INCLUDING COD AND REPYAMENT TIMELY OPERATIONAL RESTRUCTURING OF THE VENTURE EXPECTS BORROWER TO INFUSE LONG TERM FUNDS FOR ANY EXPECTED OR UNEXPECTED LOSS.
5 PERSPECTIVE OF BORROWER REQUIRES LEAD TIME TO ENHANCE FUTURE VALUE OF ECONMIC BENEFITS WANTS TO TAKE ADVANTAGE OF MULTIPLE LENDING ARRANGEMENT IN A POSITION TO ESTABLISH VIABILITY MINIMIZE LOSSESS TO CREDITORS AND STAKE HOLDERS REQUIRES ASSISTANCE FROM LENDERS IN AN ORDERLY AND CO ORDINATED MANNER PRESERVING THE BUSINESS ENTITY.
6 ROLE OF THE REGULATOR CAPTIAL ADEQUACY ON AN ON-GOING BASIS REGULTORY AND ECONOMIC CAPITAL BUFFERS TO BE BUILT UP MARKET VALUE OF EQUITY OF THE BANK MONITORING AND CONTROL RISK BASED SUPERVISION PRUDENTIAL GUIDELINES ON ASSET CLASSIFICATION AND PROVISIONING.
7 WHERE TO MEET AND BALANCE THE ISSUES? BORROWERS TEMPROARILY IN DISTRESS CIRCUMSTANCES BEYOND THE CONTROL OF THE BORROWER LEGAL OR OTHER ECONOMIC REASONS WHICH CASUSED DELAYS IN PROJ.IMPLEMENTATION GLOBAL FACTORS EXTERNAL DEVELOPMENTS USE TOOL OF RESTRCUTURING CONSCIOUSLY TO HELP BORROWER TIDE OVER DISTRESS.
8 Restructured Accounts- Definition A restructured account is one where the bank, for economic or legal reasons relating to the borrower's financial difficulty, grants to the borrower concessions that the bank would not otherwise consider.
9 BASIC OBJECTIVE PRESERVE ECONOMIC VALUE OF UNITS NOT EVER GREENING OF PROBLEM ACCOUNTS CAREFUL ASSESSMENT OF THE VIABILITY QUICK DETECTION OF WEAKNESS TIME BOUND IMPLEMENTATION RESTRUCTURED ASSET DERIVES ECONOMIC BENEFITS IN QUICKER TIME
10 SPECIAL REGULATORY TREATMENT FOR ASSET CLASSIFICATION ASSET/ACCOUNT IS FULLY SECURED UNIT BECOMES VIABLE IN 10 YEARS, IF ENGAGED IN INFRASTRUCTURE ACTIVITY 7 YEARS IN CASE OF OTHER UNITS REPAYMENT- DOES NOT EXCEED 15 YEARS IN CASE OF INFRASTRCUTURE AND 10 YEARS IN CASE OF OTHER ADVANCES. ABOVE CEILING IS NOT APPLICABLE TO HOME LOANS.
11 SPECIAL REGULATORY TREATMENT FOR ASSET CLASSIFICATION PROMOTERS SACRIFICE AND ADDL. FUNDS BROUGHT BY THEM SHOULD BE A MINIMUM OF 15% OF THE SACRIFICE THAT IS EROSION IN FAIR VALUE PROMOTERS CONTRIBUTION NEED NOT BE BROUGHT IN BY CASH. CAN BE BY DE RATING OF EQUITY, CONVERSION OF UNSECURED LOAN INTO EQUITY AND INTEREST FREE LOANS PERSONAL GUARANTEE OF THE DIRECTORS RESTRUCTURING IS NOT A REPEATED RESG
12 CORPORATE DEBT RESTRUCTURING WHY THE NEED FOR SUCH A SPECIALISED INSTITUTIONAL MECHANISM. NUMBER OF LENDERS/BANKS INVOLVED MORE DIFFICULTY IN CO ORDINATING THE NEGOTIATION AND MONITORING. DEVISING A SYSTEM FOR A COMMON POOL OF PERCEPTION
13 OBJECTIVES OF CDR To ensure timely & transparent mechanism for restructuring debts of viable corporate entities facing problems, for the benefit of all concerned. To aim at preserving viable corporates that are affected by certain internal and external factors To minimize the losses to creditors and other stakeholders through an orderly and coordinated restructuring programme.
14 Legal Basis CDR is a voluntary system based on Debtor Creditor Agreement (DCA) and Inter Creditor Agreement (ICA). DCA & ICA provide the legal basis to the CDR Mechanism
15 CDR Set Up Standing Forum Core Group Empowered Group CDR Cell
16 Standing Forum Representative body of all CDR member FI s, Banks Self empowered body Comprises Chairman/ CMDs of all member institutions Lays down policies and guidelines Monitors progress of CDR
17 Core Group Carved out of Standing Forum Comprises Chairmen/ CMDs of IDBI, SBI, ICICI Bank, PNB, BOI, BOB, Chairman, IBA & Dy Chairman, IBA (Representing Foreign Banks) Assists Standing Forum in formulating policies Addresses operational difficulties of CDR Empowered Group Lays down guidelines for workouts
18 CDR Empowered Group ED level representatives of IDBI, SBI, ICICI Bank as standing members Senior Executives of FIs, banks with exposure in concerned company Executives attending EG meetings should have general authority from their Boards to take decisions
19 CDR Cell Formats for Flash/Final Report, all CDR and RBI Circulars, Statistical Data etc. Assisting CDR Standing Forum/ Core Group/ Empowered Group Making initial scrutiny of proposals. Especially viability of the case and adherence of RBI guidelines. Placing proposals for consideration of EG
20 ADMISSION CRITERION Loan assets with an aggregate debt outstanding ( inclusive of non fund limits) of Rs 10 crore and above and involving at least two lenders. The case may be referred by a lender with exposure of minimum 20% by value. A corporate can also refer its case with letter of support from a lender or lenders with exposure of 20% by value.
21 ADMISSION CRITERION Reference of any account / case to CDR Cell is asset classification neutral. Asset of any class can be admitted subject to certain specific stipulations. Other stipulations regarding minimum margin from the Promoters, Personal Guarantee of Promoters, Pledge of promoters holding etc have to be observed.
22 Admission Criterion (cont.) Cases of fraud and malfeasance are ineligible. Cases of willful default may be considered if permitted by Core Group depending on case specifics. BIFR cases are eligible subject to approval of Core Group and with certain additional conditions.
23 Decision process Decisions in the CDR system are taken on basis of super majority where 75% of lenders by value and 60% of lenders by number have to agree.
24 Components of Restructured packages Within overall regulatory guidelines package is tailor made to suit the corporate needs. may involve certain concessions in rate of interest, carving out irregular portion by giving Working Capital Term Loan ( WCTL) granting of Funded Interest Term Loan (FITL) conversion of debt to equity or other debt instruments. ( CAPS )
25 Additional Finance Additional Finance, if any, to be provided by CDR lenders or all lenders on pro rata basis. Preferential claim with respect to cash flows in respect of additional exposures. Waterfall Mechanism is embedded in the MRA and TRA Asset classification benefits for additional exposures as per extant regulatory guidelines. Sharing additional finance compulsory only in Category I cases.
26 Timeline Initial scrutiny for Flash Report max 30 days Approval of Flash : Next EG Meeting. Approval of Final Package 60/ 90 days Issue of LOA: After confirmation of minutes Approval by individual lenders : 45 days Package Implementation by all : 120 days
27 Key Financial Benchmarks DSCR :1 Return on Capital Employed 5 year G sec + 2% Gap between IRR and cost of capital at least 1% Loan Life Ratio 1.40 Break-even analysis in line with industry Industry indicators EBIDTA, price realization,etc
28 Monitoring & Follow up CDR Cell ensures regular conduct of meetings of MC and follows up on compliance of various aspects of Restructuring Package approved and also the operational and financial performance of the corporate vis-à-vis the projections. MC is a recommendatory body and decisions are made by CDR EG.
29 Exit from CDR is possible either due to non compliance / non adherence to the package, external/industry level factors affecting the package implementation, improved performance of the corporate, merger with larger entity or for any other reason like OTS Upon Exit, Recompense clause would be triggered in certain cases. The sacrifices made by the CDR lenders would have to be recompensed by the corporate.
30 Suggested Strategies Constant data base update Regular representation at CDR EG / CG Liaison with other nodal officers BCC representation at JLM / Important MC Securing mandate internally well in advance of CDR EG Train staff on nuances of CDR Monitoring CDR a/cs through MMR / ASCROM Special focus on CDR a/cs during audit / inspection.
31 Support required from Lenders Timely submission of Flash Report and Final Restructuring Report (at least 10 days prior to CDR EG meeting) Regular conduct of MC meetings by MI and timely submission of minutes thereof to apprise CDR EG / facilitate decision by CDR EG Adherence to time lines and conditions mentioned in LOA. Sanctions committed in package and Disbursements thereof to be expedited
32 Support required from Lenders Part Mandate ( for e.g. Supporting package but no additional finance ) or change of stand taken at JLM for finalization of package / reference to CDR to be avoided. Deputing of senior executive to attend CDR EG meetings especially when the lender has a case under discussion.
33 CDR- How to use the platform judiciously? Crisis management by operational restructuring by the corporate should reflect the commitment of corporate Existing mechanism is transparent Should not be abused based on slight change / slowing down of the economy or particular sector Thrust by lenders on other credit management area Regulatory forebearance relaxation may not be continously available
34 TRENDS- ONE Particulars-RS.IN CRORE MAR-2009 MAR-2010 MAR-2011 MAR-2012 Gross advances 27,53,365 32,27,287 39,82,954 46,55,271 Growth rate TO % 23.41% 16.88% CAGR 19.13% Restrcutured -standard 75,304 1,36,426 1,37,602 2,18,608 Growth rate 81.17% 0.86% 58.48% GAGR RESTRCURED ADV. TO GROSS ADVANCES. 2.73% 4.23% 3.45% 4.68%
35 TRENDS- TWO PARTICUL PERCENT GR.ADV RES.ADV GR.ADV RES.ADV GR.ADV RES.ADV. ALL BANKS CAGR (42.54) PUBLIC SECTOR CAGR (47.86) PRIVA. SEC CAGR ( 8.12) FOREIGN.BK CAGR (-25.48)
36 THE WAY FORWARD EXISTING TRENDS- SIGNIFICANCE FROM PUBLIC POLICY STANDPOINT, BROADER ECONOMIC AND SOCIAL PERSPECTIVE-RATHER DISQUIETING RESTRCUTURING TO BE CONSIDERED ONLY UNDER SPECIFIC CONDITIONS CORPORATE WILLING TO SHARE THE BURDEN BELT TIGHTENING INITIATIVES.
37 THE WAY FORWARD PROJECT APPRAISAL STANDARDS ARE SIGNIFICANTLY ENHANCED. PROFESSIONALS SHOULD PLAY IMPORTANT ROLE IN ENHANCING VIABILITY LOOK FORWARD TO WORK WITHOUT ECONOMIC SACRIFICE WHICH IS AN ISSUE FOR THE BANKS CAPITAL ADEQUACY AVOID DEBT FUNDING OF PROMOTERS FURTHER EQUITY INFUSION.
38 THE WAY FORWARD OVER LEVERAGING THE PROJECT IS AVOIDED PROVISION FOR RE COMPENSATION ACCELERATE REPAYMENT NURTURING OF VIABLE ACCOUNTS IN THE LONG TERM INTEREST OF LENDER AND BORROWER REORIENTATION OF THE APPROACH OF THE LENDER TO SHOW MORE COMPASSION TO SMALL CUSTOMERS UNDER MSME
39 THE WAY FORWARD NEED FOR STRCUTURED MECHANISM FOR SME, RETAIL, AGRICULTURAL LOANS STRUCTURE WILL NEED TO BE BUILT IN AT VARIOUS LEVELS AT THE STATE, DISTRICT REGION AND BANK LEVELS. FUNCTIONARIES AT DIFFERENT LEVELS BEING EMPOWERED TO ASSESS THE VIABILITY ISSUES UNDER THE PRUDENTIAL GUIDELINES IN RESTRCUTURING EXPECTS TO PERCOLATE THE BENEFITS TO SMALLER ACCOUNTS.
40 CONCLUSION STRCUTURE THE PROJECT FOR AN ECONOMIC VALUE BUT NOT WITH AN OPTION TO RESTRCUTURE IN FUTURE
Emerging Opportunities in Corporate Finance. Various provisions of CDR Scheme
Emerging Opportunities in Corporate Finance Various provisions of CDR Scheme December 24, 2011 Amar Mainkar AGM, CDR Cell OBJECTIVES To ensure timely & transparent mechanism for restructuring debts of
More informationA PRESENTATION ASHOK GUPTA, SVP, IDBI CAPITAL
A PRESENTATION BY ASHOK GUPTA, SVP, IDBI CAPITAL CDR System CDR is a voluntary non-statutory mechanism based on DCA and ICA having a principle of approvals by supermajority. It covers only multiple accounts/
More informationCorporate Debt Restructuring (CDR)
BP.BC. 15 /21.04.114/2000-01 Corporate Debt Restructuring (CDR) August 23, 2001 All commercial banks (excluding RRBs & LABs) Dear Sir, Corporate Debt Restructuring (CDR) As you are aware, the need for
More informationFRAMEWORK FOR REVIVAL AND REHABILITATION OF MICRO, SMALL AND MEDIUM ENTERPRISES
FRAMEWORK FOR REVIVAL AND REHABILITATION OF MICRO, SMALL AND MEDIUM ENTERPRISES A) Objective Timely detection of stress is critical for any enterprise, as any delay in action may impinge on the revival
More informationAnnex -2 Norms on Restructuring of Advances by NBFCs
Annex -2 Norms on Restructuring of Advances by NBFCs 1. These prudential norms are applicable to all restructurings including those under CDR Mechanism. The institutional / organizational framework for
More informationFramework for Revival and Rehabilitation of Micro, Small and Medium Enterprises
Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises 1. Eligibility: The provisions made in this framework shall be applicable to MSMEs having loan limits up to Rs.25 crore,
More informationSub: Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs)
स म, लघ एव म यम उ म भ ग MICRO, SMALL & MEDIUM ENTERPRISES DIVISION Sub: Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs) A. Background: In order to provide simpler
More informationPrudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances
Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances DBOD No. BP. BC. 15 / 21.04.048 / 2003-2004 22 nd August 2003 All Commercial Banks (excluding RRBs and
More informationConsultants Pvt. Ltd.
RBI/2013-14/459 DNBS.CO. PD. No. 367 / 03.10.01/2013-14 January 23, 2014 All NBFCs excluding Primary Dealers Dear Sirs, Review of Guidelines on Restructuring of Advances by NBFCs As indicated in paragraph
More information* * * The contributions made by S/Shri M. P. Baliga and M. K. Poddar are gratefully acknowledged.
B Mahapatra: Highlights and rationale of the recommendations of the working group to review the existing prudential guidelines on restructuring of advances Keynote address of Mr B Mahapatra, Executive
More informationINDIAN OVERSEAS BANK SME DEPARTMENT CENTRAL OFFICE POLICY ON NURSING AND REHABILITATION OF SICK MSME UNITS
BACKGROUND: INDIAN OVERSEAS BANK SME DEPARTMENT CENTRAL OFFICE POLICY ON NURSING AND REHABILITATION OF SICK MSME UNITS Micro, Small and Medium Enterprises are the growth engines of the Indian Economy due
More informationCorporate Debt Restructuring -- A revival mechanism for companies
Corporate Debt Restructuring -- A revival mechanism for companies Mr. Ganatra Kashyap A. (Assistant Professor) Smt. B. M. Ruia Girls College, Dept. of Commerce & Accountancy, Mumbai, Maharashtra, India.
More informationRBI/ /131 RPCD.PLNFS. BC.No.31/ / August 19, 2005
RBI/2005-06/131 RPCD.PLNFS. BC.No.31/ 06.02.31/ 2005-06 August 19, 2005 The Chairman/Managing Director All Public Sector Banks Dear Sir, Policy Package for Stepping up Credit to Small and Medium Enterprises
More informationRBI/ /528 DNBS (PD) CC.No.371/ / March 21, 2014
RBI/2013-14/528 DNBS (PD) CC.No.371/03.05.02/2013-14 March 21, 2014 All NBFCs Dear Sirs, Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for
More informationAudit of advances & NPA
Audit of advances & NPA CA.Rajkumar S Adukia B.Com(Hons.) FCA, ACS, MBA, AICWA, LLB, Dip IFRS(UK) Dip LL& LW 09820061049/09323061049 rajkumarfca-subscribe@yahoogroups.com rajkumarfca@gmail.com www.carajkumarradukia.com
More informationIssues in Audit and Tax Audit of Banks
SPECIAL STORY Financial Services Sector : Part-I (Banks and Mutual Funds) CA Sarvesh Warty Issues in Audit and Tax Audit of Banks Banking in India is dominated by nationalised banks who account for around
More informationBCA - Workshop on NBFC St Regis Hotel Palladium, Mumbai 4 August 2016
NBFC - Statutory Audit aspects under Companies Act, 2013 BCA - Workshop on NBFC St Regis Hotel Palladium, Mumbai 4 August 2016 Agenda 1 Key aspects of audit of NBFCs 2 Laws / Regulatory Aspects 3 Accounting
More informationGuidelines for rehabilitation of sick small scale industrial units
Guidelines for rehabilitation of sick small scale industrial units PCB.POT. 01/09.09.01/2002-03. July 19, 2002 All Primary (urban) Co-operative Banks Dear Sir/Madam, Guidelines for rehabilitation of sick
More informationSeptember 28, Overview of Submission
September 28, 2017 Director Financial Institutions Division Financial Sector Branch Department of Finance Canada James Michael Flaherty Building 90 Elgin Street Ottawa ON K1A 0G5 Email: fin.legislativereview-examenlegislatif.fin@canada.ca
More informationThe Insolvency and Bankruptcy Code, 2016 (IBC)
ERSTWHILE LEGISLATIVE FRAMEWORK: Chapter XIX & Chapter XX of Companies Act, 2013 Part VIA, Part VII & Section 391 of Companies Act, 1956 RDDBFI Act, 1993 SARFAESI Act, 2002 SICA Act, 1985 ( Now Repealed)
More informationSovereign Debt Restructuring: An overview of ongoing work. Benu Schneider
Sovereign Debt Restructuring: An overview of ongoing work Benu Schneider Identifying Gaps in IMF Architecture for Debt Resolution in a world of open capital accounts New Financing Standstills Adjustment
More informationIdf. Idf Financial Services Private Limited FAIR PRACTICES CODE
Idf Idf Financial Services Private Limited FAIR PRACTICES CODE Developed on the basis of the guidelines issued by the Reserve Bank of India vide their circular DNBS.CC.PD.No.266 /03.10.01/2011-12 Adopted
More informationScheme Financing Infrastructure Projects through the India Infrastructure Finance Company Limited (IIFCL)
Government of India Scheme Financing Infrastructure Projects through the India Infrastructure Finance Company Limited (IIFCL) Published by The Secretariat for the Committee on Infrastructure Planning Commission,
More informationCredit Management. Principles of good lending
Credit Management Principles of good lending Safety Liquidity Profitability Spread Purpose End use Need based finance Viability oriented instead of security oriented lending Own stake National priorities
More informationPRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION
PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION Out of order status An out of order account is one in which the outstanding balance remains continuously in excess of the sanctioned limit/drawing
More informationRESTRUCTURING & INSOLVENCY - THE INDIAN SCENARIO. `Extend a helping hand to an entity in distress
RESTRUCTURING & INSOLVENCY - THE INDIAN SCENARIO `Extend a helping hand to an entity in distress The global economic slowdown has already cast its shadow on the Indian industries also, which are also falling
More informationReserve Bank of India Discussion Paper
Reserve Bank of India Discussion Paper Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy Introduction
More informationInsolvency. Corporate Viaticum and Where We Stand in the World: An Analysis
Insolvency 1557 Corporate Viaticum and Where We Stand in the World: An Analysis The Sabka Saath, Sabka Vikas agenda ushered in by the current NDA government can become a reality only if there are drastic
More informationForum for Asian Insolvency Reform (FAIR) MAXIMISING VALUE OF NON- PERFORMING ASSETS
Forum for Asian Insolvency Reform (FAIR) MAXIMISING VALUE OF NON- PERFORMING ASSETS Seoul, Korea 10-11 November 2003 Developing the Asian Markets for Non-Performing Assets by Mr. Ashwani Puri, Eecutive
More informationAlternatives to Bankruptcy. Options for Corporate Recovery
Alternatives to Bankruptcy Options for Corporate Recovery Overview Strategic guidelines Analytical framework Causes of business failure Restructuring options The turnaround process DIP financing structures
More informationArticle. RBI s Framework for revitalising distressed assets leaves everyone in stress Bank, NBFCs, Corporate Inc, CAs, advocates no one s spared
RBI s Framework for revitalising distressed assets leaves everyone in stress Bank, NBFCs, Corporate Inc, CAs, advocates no one s spared Nidhi Bothra nidhi@vinodkothari.com Abhirup Ghosh abhirup@vinodkothari.com
More information/Head Office. Sl. Rate of Interest (linked with MCLR- Y) MCLR-Y=8.60% w.e.f Category of Advance
龸 ؼ 맘 κꔰؼ 퀍ᅧ퀍 κ フィート䁯 맘 /United Bank of India 맘 ؼ ᅧ맘맘 /Head Office Rate of interest Chart on various categories of loans and advances linked with MCLR MCLR internal benchmark rate for different maturities
More informationCoverage. Objective. CA Dhananjay J. Gokhale. Prudential Norms on Income Recognition, Asset Classification and Provisioning
Seminar on Bank Branch Audit Prudential Norms on Income Recognition, Asset Classification and Provisioning Organis ed by: Pim pri Chinchwad Br anch of W I R C o f I C A I C A D h a n a n j a y J. G o k
More informationThe Chairman of the Audit Committee shall be an independent Director who is elected by the members of the Audit Committee.
The Jana Bank Limited has in place the Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013 and as required by RBI. Chairman The Chairman of the Audit Committee shall
More informationIndia Infrastructure Debt Fund: A Concept Paper
India Infrastructure Debt Fund: A Concept Paper - Gajendra Haldea Creation of world-class infrastructure has been recognised as a key priority and a necessary condition for sustaining the growth momentum
More informationPolicy Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises
Policy Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises 1. Eligibility: The provisions made in this framework shall be applicable to MSMEs having loan limit exposure up to
More informationResponse from the Hellenic Bank Association to the draft ECB guidance to banks on non-performing loans
Response from the Hellenic Bank Association to the draft ECB guidance to banks on non-performing loans Ι. General comments The Hellenic Bank Association (HBA) was established in 1928 and is a non-profit
More informationSIRC of ICAI Workshop on Bank Branch Audit. Prudential Norms (IRAC) - An Overview
SIRC of ICAI Workshop on Bank Branch Audit Prudential Norms (IRAC) - An Overview CA. Chandra Sekhar Veeraghanta, B.Com, FCA, DISA, CISA 10-03-2017 VACA 1 Prudential norms on INCOME RECOGNITION, ASSET CLASSIFICATION
More informationGUIDELINES OF INDIA MICROFINANCE EQUITY FUND
GUIDELINES OF INDIA MICROFINANCE EQUITY FUND 1 CONTENTS 1. Objective - Page 3 2. Principal features - Page 3 3. Purpose - Page 3 4. Types of instruments - Page 3 5. Eligibility criteria - Page 4 6. Sanction
More informationBy CA Kanika khetan
BANK AUDIT By CA Kanika khetan cakanika14@gmail.com www.anushriagarwal.com Type of banks Commercial Banks. Co-operative Banks. Development Banks (more commonly known as Term-Lending Institutions ). Regional
More informationFund Raising for Real Estate Opportunities for Chartered Accountants
Fund Raising for Real Estate Opportunities for Chartered Accountants CA Vinit Vyankatesh Deo Chairman & Managing Director Posiview Consulting Partners Group April 2014 Disclaimer The document contains
More informationGood Practices for NPL Resolution. Constant Verkoren & Anna Ilyina Vienna, June 26
Good Practices for NPL Resolution Constant Verkoren & Anna Ilyina Vienna, June 26 Context why does NPL resolution matter? 2 Context why does NPL resolution matter? NPL overhang holding back recovery Banks
More informationGuidelines related to MSME Sector
Guidelines related to MSME Sector Guidelines related to MSME Sector This Section consists of three parts: Part I : The guidelines related to MSME Sector which deals with the objective, scope & applicability,
More informationINDEPENDENT AUDITOR S REPORT
INDEPENDENT AUDITOR S REPORT SHAH ALLOYS LIMITED To the Members of SHAH ALLOYS LIMITED AHMEDABAD Report on the Financial Statements We have audited the accompanying financial statements of Shah Alloys
More informationDecoding Insolvency & Bankruptcy Code
Decoding Insolvency & Bankruptcy Code Why is the code imperative today? What does it change for the borrowers? Lender inertia during the CIRP would mean liquidation invariably an economically inferior
More informationRESERVE BANK OF INDIA'S ROLE AND GUIDELINES REGARDING IN SUGAR INDUSTRY
Chapter-VI RESERVE BANK OF INDIA'S ROLE AND GUIDELINES REGARDING IN SUGAR INDUSTRY A special cell has been created in the RBI to function as a clearing house for information and also to act as a coordinating
More informationONE TIME SETTLEMENT SCHEME
ONE TIME SETTLEMENT SCHEME OTS - 2007 1. INTRODUCTION: In order to reduce the excessively high level of NPA in the loan portfolio of OSFC and in accordance with instruction received from the State Government,
More informationSeminar on Bank Branch Audit. Prudential Norms on Income Recognition, Asset Classification and Provisioning. W I R C o f I C A I
Seminar on Bank Branch Audit Prudential Norms on Income Recognition, Asset Classification and Provisioning Organised by: Thane Branch of W I R C o f I C A I C A D h a n a n j a y J. G o k h a l e 1 Coverage
More informationMEMORANDUM OF ECONOMIC AND FINANCIAL POLICIES
MEMORANDUM OF ECONOMIC AND FINANCIAL POLICIES The slowdown in the global economy, coupled with declining export prices and capital outflows, is placing Sri Lanka s recent economic and social progress under
More informationMEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE. No. 39/RN/Ref/October/2016
MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE No. 39/RN/Ref/October/2016 For the use of Members of Parliament NOT FOR PUBLICATION 1 NON PERFORMING ASSETS IN PUBLIC
More informationFinancing Energy Efficiency Projects for SMEs
Financing Energy Efficiency Projects for SMEs UNEP Workshop: Corporate Social Responsibility & Sustainable reporting Mumbai, Tuesday the 5 th December 2006 1 SMEs In India Industries with investment upto
More informationGaps in the Architecture for Sovereign Debt Restructuring
Gaps in the Architecture for Sovereign Debt Restructuring Benu Schneider The views expressed do not necessarily represent those of the Financing for Development Office, Department of Economic and Social
More informationB. Whereas the development of infrastructure requires debt of longer maturity to supplement the debt funds presently available; and
Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called the India Infrastructure Finance Company Limited (IIFCL) (Revised) 1. Preamble A. Whereas the Government of
More informationSUZLON ENERGY LIMITED CIN : L40100GJ1995PLC "SUZLON", 5, SHRIMALI SOCIETY, NEAR SHRI KRISHNA COMPLEX, NAVRANGPURA, AHMEDABAD
PART I STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2015 (Rs. in crores) Quarter ended Year ended 2015 December 31, 2015 (Audited) (Unaudited) (Audited) (Audited) (Audited)
More informationChapter 5 Past efforts at restructuring
Chapter 5 Past efforts at restructuring 5.1 As stipulated by the Reserve Bank of India, banks were required to attain capital adequacy ratio of 8 per cent by 31 March 1996. Since quite a few public sector
More informationA Study on the Debt Recovery Agencies
A Study on the Debt Recovery Agencies Dr. B.Saritha 1 PhD Finance Principal, MG University, Nalgonda Dist. Mrs. Seema Nazneen 2 Mrs CH Siva Priya 3 Research Scholar Assistant Prof School of Business Management
More informationThird Monitoring Report of IFC s Response to: CAO Audit of a Sample of IFC Investments in Third-Party Financial Intermediaries
MONITORING REPORT CAO Audit of IFC CAO Compliance March 6, 2017 Third Monitoring Report of IFC s Response to: CAO Audit of a Sample of IFC Investments in Third-Party Financial Intermediaries Office of
More informationNBFC Prudential Norms & Compliances Important Aspects
NBFC Prudential Norms & Compliances Important Aspects Bombay Chartered Accountants Society CA Bhavesh Vora Coverage Existence of NBFCs Last Decade of NBFC Banks Vs. Non-Banks Meaning of NBFCs Major Changes
More informationFramework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (FRR for MSMEs)
Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (FRR for MSMEs) In order to provide a simpler and faster mechanism to address the stress in MSME accounts and their revival,
More information5014/19 MI/mf 1 ECOMP.1.B.
Council of the European Union Brussels, 3 January 2019 (OR. en) Interinstitutional File: 2018/0060(COD) 5014/19 'I' ITEM NOTE From: General Secretariat of the Council EF 1 ECOFIN 1 JAI 1 JUSTCIV 1 COMPET
More informationWorld Developments in Insolvency Regulation
World Developments in Insolvency Regulation Kiev, Ukraine February 2012 Mahesh Uttamchandani Global Product Leader Debt Resolution & Business Exit World Bank IFC MIGA Outline 1. Problems and challenges
More informationSIDBI s Schemes of Assistance
SIDBI s Schemes of Assistance TEAM SIDBI 1 SIDBI A brief Profile Constitution Set up in 1990 SIDBI Act Initially wholly owned subsidiary of IDBI Act amended in 2000 to broad based shareholding Shares held
More informationBANKING SECTOR PERFORMANCE STUDY H1FY14
BANKING SECTOR PERFORMANCE STUDY H1FY14 Our study covers 39 banks 26 Public Sector Banks & 13 Private Sector Banks. Banking December 11, 2013 Foreword As per the Central Statistical Organization (CSO)
More informationINTERNAL FINANCIAL CONTROL POLICY
INTERNAL FINANCIAL CONTROL POLICY The Board of Directors of Kilitch Drugs (India) Limited has adopted the following Internal Financial Control Policy. Section 134(5)(e) of the Companies Act, 2013 requires,
More informationRBI / /416 DNBS.CC.PD.No. 320/ / February 18, 2013
RBI / 2012-13/416 DNBS.CC.PD.No. 320/03.10.01/2012-13 February 18, 2013 To All NBFCs Dear Sir, Guidelines on Fair Practices Code for NBFCs Grievance Redressal Mechanism - Nodal Officer The Reserve Bank
More informationRBI/ /470 DNBS.CC.PD.No.266 / / March 26, 2012
RBI/2011-12/470 DNBS.CC.PD.No.266 /03.10.01/2011-12 March 26, 2012 To All NBFCs Dear Sir, Guidelines on Fair Practices Code for NBFCs The Reserve Bank vide its circular dated September 28, 2006, issued
More informationSub-Committee of State Level Inter Institutional Committee(SLIIC)- Constitution & Purpose
Sub-Committee of State Level Inter Institutional Committee(SLIIC)- Constitution & Purpose In order to effectively monitor the timely rehabilitation and restructuring of Sick Micro, Small and Medium Enterprises
More informationINDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENT GREEN POWER COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENT GREEN POWER COMPANY LIMITED Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of ORIENT
More informationResolution of Stressed Assets: Towards the Endgame. Urjit R. Patel
Resolution of Stressed Assets: Towards the Endgame Urjit R. Patel Inaugural Session of the National Conference on Insolvency and Bankruptcy: Changing Paradigm. Mumbai, August 19, 2017 1. Honourable Finance
More informationTakeout Finance Scheme for Financing Viable Infrastructure Projects
Takeout Finance Scheme for Financing Viable Infrastructure Preamble In the Union Budget speech for the year 2009-10, the Hon ble Union Finance Minister stated To stimulate public investment in infrastructure,
More informationSub-Committee of State Level Inter Institutional Committee (SLIIC)-Constitution & Purpose
Sub-Committee of State Level Inter Institutional Committee (SLIIC)-Constitution & Purpose In order to effectively monitor the timely rehabilitation and restructuring of Sick Micro, Small and Medium Enterprises
More informationReal Estate Joint Ventures: Opportunities and Legal Risks Strategies to Negotiate and Structure the JV Operating Agreement
presents Real Estate Joint Ventures: Opportunities and Legal Risks Strategies to Negotiate and Structure the JV Operating Agreement A Live 90-Minute Teleconference/Webinar with Interactive Q&A Today's
More informationState Aid and the financial crisis
Round Table EU State Aid Law 4 March 2009 State Aid and the financial crisis Adinda SINNAEVE Summary Background I. The Guidance Paper of 13 October 2008 II. The Recapitalisation Paper of 5 December 2008
More informationDescription: Sound Risk Management Practices. Subject: Leveraged Financing PURPOSE
Subject: Leveraged Financing Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of Thrift Supervision Description: Sound
More informationC.A. Parag Hangekar Partner Batliboi & Purohit Cell:
Bank Branch Statutory Audit Prudential Norms on Income Recognition, Asset Classification and Provisioning C.A. Parag Hangekar Partner Batliboi & Purohit E-mail: prh@batliboipurohit.com Cell: 9820577913
More informationGuidelines for Formulation, Appraisal and Approval of
Government of India Ministry of Finance Department of Economic Affairs Guidelines for Formulation, Appraisal and Approval of Central Sector Public Private Partnership Projects INFRASTRUCTURE Building for
More informationNon performing assets of NBFI S in India
Non performing of NBFI S in India Journal of Social Welfare and Management 103 Volume 4 Number 2, April - June 2012 S. Kamalaveni*, R. Anitha** Abstract This paper focuses on the non-performing of NBFI
More informationProject Finance An Overview
Project Finance An Overview KAMAL TAK ICAI, Navi Mumbai Chapter December 16, 2012 1 Project Finance An Overview What is Project Financing? How is it different? How are Projects developed? Various Project
More informationRBI / /27 DNBS (PD) CC No. 286/ / July 2, 2012
RBI /2012-13/27 DNBS (PD) CC No. 286/03.10.042/2012-13 July 2, 2012 To All Non-Banking Financial Companies (NBFCs) and Residuary Non-Banking Companies (RNBCs) Dear Sir, Master Circular - Fair Practices
More informationECOWRAP MODERN DAY DAVID (NCLT) VS. GOLIATH (ACTIVE COMPANIES) SAGA SBI ECOWRAP
ECOWRAP MARCH 19, 2018 ISSUE NO: 79, FY18 MODERN DAY DAVID (NCLT) VS. GOLIATH (ACTIVE COMPANIES) SAGA The Central Government has constituted National Company Law Tribunal (NCLT) w.e.f. 01st June 2016.
More informationLESSON 16 INSOLVENCY CONCEPTS AND EVOLUTION
LESSON 16 INSOLVENCY CONCEPTS AND EVOLUTION INSOLVENCY/BANKRUPTCY THE CONCEPT Insolvency is when an individual, corporation, or other organization cannot meet its financial obligations for paying debts.
More informationNPAs and their assignment to Assets Reconstruction Companies (ARCs)
Introduction NPAs and their assignment to Assets Reconstruction Companies (ARCs) Dr. A.N. Garg NPA is a classification used by financial institutions that refer to loans that are in jeopardy of default.
More informationSEMINAR ON BANK AUDIT FOR CENTRAL STATUTORY AUDITORS
SEMINAR ON BANK AUDIT FOR CENTRAL STATUTORY AUDITORS CA. A.MONY, B.Com. FCA.DISA, DEMONETISATION The onerous task of the auditors at the central level is to address and satisfy the internal controls and
More informationVISION IAS
VISION IAS www.visionias.in NPA & Related Issues Table of Content 1 Reasons for NPAs... 2 2 Impacts of rising NPAs... 3 3 Major Sectors of the Economy having NPAs... 3 4 How to Reduce NPAs... 4 5 Recent
More informationAnnexure 5: Basel III Pillar 3 Disclosures. 1. Scope of Application
Annexure 5: Basel III Pillar 3 Disclosures 1. Scope of Application The Catholic Syrian Bank Ltd is a commercial bank formed on 26th November 1920 with Registered Office at Thrissur. In August 1969, the
More informationINSOLVENCY AND BANKRUPTCY CODE, By: Karishma Jaiswal Associate Maheshwari & Co. Advocates & Legal Consultants
INSOLVENCY AND BANKRUPTCY CODE, 2016 By: Karishma Jaiswal Associate Maheshwari & Co. Advocates & Legal Consultants INSOLVENCY AND BANKRUPTCY CODE, 2016 INTRODUCTION INSOLVENCY: Insolvency is a situation
More informationProposed Framework For Expedited Insolvency Procedures to Facilitate Cross-Border Restructurings
Proposed Framework For Expedited Insolvency Procedures to Facilitate Cross-Border Restructurings (Text distributed at UNCITRAL/INSOL/IBA Vienna Colloquium) The recent work of the Insolvency Working Group
More informationFrench Insolvency Proceedings. The 2014 Reforms
French Insolvency Proceedings The 2014 Reforms 1 Legal framework: from debtor friendly to creditor friendly?... 2 2 Pre-insolvency procedures (Ad Hoc mandates and Conciliation)... 3 3 Formal insolvency
More informationGURUJI24.COM EXPOSURES NORMS. Exposure
Exposure EXPOSURES NORMS Exposure includes credit exposure (funded and non-funded credit limits) and investment exposure (including underwriting and similar commitments). The sanctioned limits or outstanding,
More informationNon-performing assets: an Indian perspective
Non-performing assets: an Indian perspective Thought Paper www.infosys.com/finacle Universal Banking Solution Systems Integration Consulting Business Process Outsourcing Non-performing assets: an Indian
More informationFINANCIAL HIGHLIGHTS FOR THE 4 TH QUARTER & FINANCIAL YEAR ENDED 31 ST MARCH 2018
FINANCIAL HIGHLIGHTS FOR THE 4 TH QUARTER & FINANCIAL YEAR ENDED 31 ST MARCH 2018 PERFORMANCE HIGHLIGHTS- & 20 Total Business of the Bank improved to Rs. 4,72,323 crore in March 31, 2018 as against Rs.
More informationREPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON BORROWING AND LENDING ACTIVITIES OF THE EUROPEAN UNION IN 2014
EUROPEAN COMMISSION Brussels, 10.7.2015 COM(2015) 327 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON BORROWING AND LENDING ACTIVITIES OF THE EUROPEAN UNION IN 2014 EN EN
More informationASSET MANAGEMENT COMPANIES AND NON-PERFORMING ASSETS The Asian Experience
ASSET MANAGEMENT COMPANIES AND NON-PERFORMING ASSETS The Asian Experience Presentation for the Third International Non-Performing Assets Forum Elena Miteva, Administrator, OECD This presentation draws
More informationProcesses under India s new bankruptcy law
Processes under India s new bankruptcy law Renuka Sane March 25, 2017 Problems with the current processes Misplaced emphasis on secured credit Value destruction in corporate distress Corporate bond market
More informationSIRC of ICAI. Bank Branch Audit - IRAC Norms & 1
SIRC of ICAI Bank Branch Audit - IRAC Norms & 1 Assets Classification Whether need to verify following loans Agricultural gold loans sanctioned in last 2 years Loans against KVP, NSC, IVP, LIC, FD if dues
More informationCapital split between compartments
Financial Instrument Capital split between compartments Accelerator & Seed Capital Fund(s) The Acceleration compartment (or window ) provides initial financing to emerging entrepreneurs to research, assess
More informationINTERNAL FINANCIAL CONTROL POLICY POKARNA LIMITED
INTERNAL FINANCIAL CONTROL POLICY POKARNA LIMITED INTRODUCTION Section 134 (5) (e) of the Companies Act, 2013 requires, the Board of every Listed Company to lay down Internal Financial Controls to be followed
More informationNirmal Bang Financial Services Pvt. Ltd. POLICY ON DEMAND / CALL LOAN
POLICY ON DEMAND / CALL LOAN 1 1. Introduction The Company extends inter corporate loan finance to Individuals, HNIs, HUFs, Partnership Firms and Corporates, both secured and unsecured, to eligible borrowers,
More informationSEMINAR ON INTERNAL AUDIT IN BFSI. February 9, 2013
SEMINAR ON INTERNAL AUDIT IN BFSI February 9, 2013 AGENDA Background Regulator and Regulatory framework Guidelines for Internal Audit Functions of a Bank What we do different Future trends AGENDA Background
More informationUpdate on the curatorship of African Bank Ltd. Ismail Momoniat Roy Havemann National Treasury March 2014
Update on the curatorship of African Bank Ltd Ismail Momoniat Roy Havemann National Treasury March 2014 Outline Timeline of events that led to curatorship of ABL Reserve Bank announcement Progress to date
More information