{"id":18620,"date":"2020-08-31T06:08:18","date_gmt":"2020-08-31T06:08:18","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=18620"},"modified":"2020-08-31T06:08:18","modified_gmt":"2020-08-31T06:08:18","slug":"finance-minister-nirmala-sitharaman-to-review-stress-in-bank-loans-on-september-3","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=18620","title":{"rendered":"Finance minister Nirmala Sitharaman to review stress in bank loans on September 3"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2065407 size-large\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2065407 size-large\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2065407 size-large\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti-313x209.jpg 313w, https:\/\/images.financialexpress.com\/2020\/08\/nirmala-sitharaman-pti.jpg 660w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, finance ministry said.<\/span><\/figure>\n<\/div>\n<p>Finance minister Nirmala Sitharaman will meet top executives of banks and non-banking financial companies (NBFCs) on September 3 to review the implementation of the resolution framework for stress in bank loans, caused by the unprecedented Covid-19 pandemic. The meeting comes ahead of the expected announcement of the KV Kamath-led panel\u2019s recommendations on eligibility parameters for the restructuring of loans to soften the blow to both borrowers and the lenders in the wake of the pandemic.<\/p>\n<p>\u201cThe review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation,\u201d the finance ministry said in a statement on Sunday.<\/p>\n<p>Earlier this month, the Reserve Bank of India extended a special window for lenders to recast stressed retail and corporate loans without classifying them as non-performing, provided that they set aside 10% provisions on such advances. <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a> governor Shaktikanta Das has said a resolution framework for covid-19-related stressed accounts will be finalised by September 6.<\/p>\n<p>Already, banks have started internal processes to gauge the extent of the likely loan restructuring exercise. For instance, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">Punjab National Bank<\/a> (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">PNB<\/a>) saw about 5-6% of its loan book, or between Rs 36,000 crore and Rs 43,000 crore, getting recast in FY21, its managing director S S Mallikarjuna Rao said last week. Of course, a clearer picture will emerge after the Kamath panel prescribes the contours of the recast scheme, Rao added. The current repayment moratorium will expire on Monday after six months.<\/p>\n<p>In its Financial Stability Report, the RBI has forecast that gross non-performing assets (NPAs) may jump from 8.5% at the end of March 2020 to 12.5%, a 20-year peak, by March 2021. However, the NPA level may shoot to 14.7% by March 2021 in case of a severity of economic stress.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/finance-minister-nirmala-sitharaman-to-review-stress-in-bank-loans-on-september-3\/2069939\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, finance ministry said. Finance minister Nirmala Sitharaman will meet top executives of banks and non-banking financial companies (NBFCs) on September 3 to review the implementation of the resolution framework for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18621,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-18620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/nirmala-sitharaman-pti.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18620"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/18621"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}