National
Bankers bet on IBC, NCLT process to solve bad loans problem
Kolkata, Sep 16 (IANS) Bankers on Saturday said they are betting on the Insolvency and Bankruptcy Code and the process of National Company Law Tribunal for getting quick resolutions in order to solve the problems of bad loans.
“The Insolvency and Bankruptcy Code, 2016 is a game-changer,” State Bank of India’s Managing Director (National Banking Group),Rajnish Kumar said, adding that it will greatly increase the pace of resolution of stressed assets.
NCLT process is the new one and not matured but it provides a quick mechanism for getting resolutions for the stressed assets, bankers said, adding that the restructuring of bad loans, under the previously floated models, were tried to get rid of the problems but earlier models did not solve many problems.
“With the guideline of earlier restructuring models (S4A, 5/25 and others), the lenders tried their best to solve the bad loans issues. Some of the stressed accounts were addressed but some bigger problems were not solved. The NCLT and IBC is an improved version. The response under the process is so far so good,” Bank of India’s MD and CEO Dinabandhu Mohapatra said at an event organised by CII here.
His UCO Bank’s counterpart Ravi Kishan Takkar also said the banks are looking forward to NCLT process.
“The primary objective for the NCLT process is to get the resolution, not liquidation. Lot things are in place under the NCLT process. In the earlier models, banks could not take sufficient calls. In NCLT, banks can take higher haircuts,” he said.
The Reserve Bank of India had identified 12 large accounts with exposure of more than Rs 5,000 crore and more than 60 per cent of which was recognised as non performing assets (NPAs). Banks have to refer to the IBC for these accounts. The apex bank further identified more stressed accounts for which the insolvency process needs to be initiated.
High NPA ratio had existed earlier, too, Kumar said, adding that the main purpose of NCLT is not liquidation but resolution. Currently, there are 11 NCLT benches across the country and 25,000 insolvency cases were pending. Since the resolutions need to happen in a time-bound manner, the number of benches would have to be increased, he said.
However, the bankers said fresh slippages to bad loans have been slowing up.
“Almost all the bigger stressed accounts are addressed or booked. The banks have covered the problem areas, June quarter results of the bank showed the fresh slippages were not growing. That indicates the bigger (stressed) accounts were booked,” Mohapatra said.
Slippages have slowed down but overall NPAs would go up to some extent in the coming quarters, Takkar said, adding that subdued credit off-take was a concern for the industry.
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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