RBI launches new debt restructuring scheme
The Dollar Business Bureau The Reserve Bank of India on Monday launched a new scheme ‘Sustainable Structuring of Stressed Assets’ (S4A) which allows lenders to divide the stressed loans into sustainable and unsustainable portions. Under sustainable portion, banks need to divide the existing debt of a company into sustainable (a share which can be serviced by the company even if cash flows remain the same as now) and ‘unsustainable’ which can be converted into equity or compulsory convertible debentures. To smoothen things the Govt will take the help of an independent agency to ascertain the economic viability of the project and the resolution plan. The aim of this scheme is to permit banks to rearrange stressed loans of over Rs.500 crore including accumulated interest ...
11 PSBs need Rs.1.2 lakh cr infusion by 2020: Moodys
The Dollar Business Bureau The government needs to infuse Rs.1.2 lakh crore into 11 public sector banks (PSBs) by 2020 to strengthen their books, said credit rating agency Moody's. “The State Bank of India (SBI) and 10 other PSBs (including Bank of Baroda and Bank of India) will have to be infused with Rs.1.2 lakh crore, much higher than the government has planned to inject, to boost their balance sheets,” said Moody’s Investors Service on Friday. The government has announced to infuse Rs.70,000 crore as capital for 22 PSBs till March 2019. Out of this, an amount of Rs.25,000 crore has already been infused and the government is planning to inject an equal amount during this fiscal. “In the wake of their results for ...
FinMin wants CBI to fast-track BoB fraud case
Source: PTI The Finance Ministry wants CBI to expeditiously complete the probe in the alleged funds transfer case of Bank of Baroda so that the offenders could be brought to the book and the exact amount in the fraud is known. “We want CBI to complete investigation expeditiously. As of now, we don't know whether the amount involved is Rs.6,000 crore,” a top ministry official said. Last week, CBI and the Enforcement Directorate started investigation on the matter. It is alleged that Rs.6,172 crore black money was remitted from Bank of Baroda to Hong Kong camouflaged as payments for non-existent imports like cashew, pulses and rice. It is also alleged that amount was deposited in 59 accounts of the bank's Ashok Vihar branch ...
Forex scam: Bank of Baroda says branch didnt adhere to norms
Sai Nikesh | The Dollar Business Soon after the startling revelation about alleged irregularities in overseas transactions worth over Rs.6,000 crore, Bank of Baroda has said that its Delhi branch failed to 'adhere to the Foreign Exchange Management Act (FEMA) guidelines while processing high-value remittance'. The Public Sector Bank said that it had found suspicious transactions involving foreign accounts through its Delhi's Ashok Vihar branch and reported the matter to the Finance Ministry, Enforcement Directorate (ED) and CBI in September. According to media reports, CBI and ED officials last week, in a series of raids, found documents related to 59 companies that opened current accounts in Bank of Baroda’s branch and transferred Rs.6,172 crore in the garb of advance payments for imports ...
