Framework for Revitalising Distressed Assets in the Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures

RBI/2013-14/502 DBOD.BP.BC.No. 98/21.04.132/2013-14 February 26, 2014 All Scheduled Commercial Banks (excluding RRBs) All-India Term-lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Framework for Revitalising Distressed Assets in the Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures Please refer to paragraphs 5 and 8 to 12 of the Framework for Revitalising Distressed Assets in the Economy, placed on our website on January 30, 2014. Accordingly, detailed guidelines on the subject of ‘Refinancing of Project Loans’, ‘Sale of NPAs by Banks’ and other regulatory measures are as under: 2. Refinancing of Project Loans 2.1 In terms of our circular DBOD.BP.BC.No.37/21.04.132/2008-09 dated August 27, 2008 on ‘Prudential Guidelines on Restructuring of Advances by Banks’, 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. Restructuring would normally involve modification of terms of the advances/securities, which would generally include, among others, alteration of repayment period/repayable amount/ the amount of instalments/rate of interest (due to reasons other than competitive reasons). Thus, any change in repayment schedule of a loan will render it as restructured account. 2.2 Further, in terms of DBOD.No.BP.BC.144/21.04.048-2000 dated February 29, 2000 on ‘Income Recognition, Asset Classification, Provisioning and other related matters and Capital Adequacy Standards - Takeout Finance’, banks can refinance their existing infrastructure project loans by entering into take-out financing agreements with any financial institution on a pre-determined basis. If there is no pre-determined agreement, a standard account in the books of a bank can still be taken over by other banks/FIs, subject to our guidelines on ‘Transfer of Borrowal Accounts from one Bank to Another’ issued vide circular DBOD.No.BP.BC-104/21.04.048/2011-12 dated May 10, 2012. 2.3 In partial modification to the above-mentioned circulars, banks are advised that if they refinance any existing infrastructure and other project loans by way of take-out financing, even without a pre-determined agreement with other banks / FIs, and fix a longer repayment period, the same would not be considered as restructuring if the following conditions are satisfied: Such loans should be ‘standard’ in the books of the existing banks, and should have not been restructured in the past. Such loans should be substantially taken over (more than 50% of the outstanding loan by value) from the existing financing banks/Financial institutions. The repayment period should be fixed by taking into account the life cycle of the project and cash flows from the project. 3. Sale of Financial Assets to Securitisation Company (SC)/Reconstruction Company (RC) 3.1 Securitisation Companies (SCs)/Reconstruction Companies (RCs) should be construed as a supportive system for stressed asset management with greater emphasis on asset reconstruction rather than asset stripping. Towards this end, sale of assets to SCs/RCs is encouraged at a stage when the assets have good chance of revival and fair amount of realizable value. In terms of circular DBOD.No.BP.BC.96/21.04.048/2002-03 dated April 23, 2003 on “Guidelines on Sale of Financial Assets to Securitisation Company (SC) /Reconstruction Company (RC) [Created under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002] and Related Issues”, a financial asset may be sold to the SC/RC by any bank/FI where the asset is:   i) A NPA, including a non-performing bond/debenture, and ii) A Standard Asset where: (a) the asset is under consortium/multiple banking arrangements, (b) at least 75% by value of the asset is classified as non-performing asset in the books of other banks / FIs, and (c) at least 75% (by value) of the banks/FIs who are under the consortium/ multiple banking arrangements agree to the sale of the asset to SC / RC. 3.2 In addition to the above and in order to ensure better chances of reconstruction of stressed assets, henceforth a financial asset may be sold to the SC/RC by any bank/FI where the asset is reported as a financial asset reported as SMA-21 by the bank/FI to Central Repository for Information on Large Credit (CRILC)2. 3.3 Further, paragraph 5 (A) (a) of the above-mentioned circular dated April 23, 2003, inter-alia, states that: (i) When a bank/FI sells its financial assets to SC/RC, on transfer the same will be removed from its books. (ii) If the sale to SC / RC is at a price below the net book value (NBV) (i.e., book value less provisions held), the shortfall should be debited to the profit and loss account of that year. (iii) If the sale is for a value higher than the NBV, the excess provision will not be reversed but will be utilized to meet the shortfall / loss on account of sale of other financial assets to SC / RC. 3.4 With a view to incentivising banks to recover appropriate value in respect of their NPAs promptly, henceforth, banks can reverse the excess provision on sale of NPA if the sale is for a value higher than the NBV to its P&L account in the year the amounts are received. Further, as an incentive for early sale of NPAs, banks can spread over any shortfall, if the sale value is lower than the NBV, over a period of two years. This facility of spreading over the shortfall would however be available for NPAs sold up to March 31, 2015 and will be subject to necessary disclosures in the Notes to Account in Annual Financial Statements of the banks. 3.5 It has been brought to our notice that banks sometimes use the auction process for sale of NPAs as a price discovery mechanism for such assets, where they invite bids from SCs/RCs and do not accept any bid without assigning any reason. As quoting of bids involves costly and lengthy due-diligence by SCs/RCs, such practices by banks bring imperfection in the market by imposing disincentives on SCs/RCs to carry out proper due-diligence. Therefore, it is advised that banks using auction process for sale of NPAs to SCs/RCs should be more transparent, including disclosure of the Reserve Price, specifying clauses for non-acceptance of bids, etc. If a bid received is above the Reserve Price and a minimum of 50 per cent of sale proceeds is in cash, and also fulfils the other conditions specified in the Offer Document, acceptance of that bid would be mandatory. 4. Purchase/Sale of Non-Performing Financial Assets to Other Banks 4.1 Our circular DBOD.No.BP.BC.16/21.04.048/2005-06 dated July 13, 2005 on ‘Guidelines on Sale/Purchase of Non-Performing Financial Assets’ as consolidated and updated in our Master Circular ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’, inter-alia, prescribes the following: A non-performing asset in the books of a bank shall be eligible for sale to other banks only if it has remained a non-performing asset for at least two years in the books of the selling bank. A non-performing financial asset should be held by the purchasing bank in its books at least for a period of 15 months before it is sold to other banks 4.2 In partial modification to the above, it is advised that banks will be permitted to sell their NPAs to other banks/FIs/NBFCs (excluding SCs/RCs) without any initial holding period. However, the non-performing financial asset should be held by the purchasing bank in its books at least for a period of 12 months before it is sold to other banks/financial institutions/NBFCs (excluding SCs/RCs). The extant prudential norms on asset classification of such assets in the books of purchasing banks/FIs/NBFCs will remain unchanged. 5. Use of Counter-cyclical/Floating Provision 5.1 In terms of our circulars DBOD.BP.BC.89/21.04.048/2005-06 dated June 22, 2006 and DBOD.BP.BC.68/21.04.048/2006-07 dated March 13, 2007 on ‘Prudential Norms on Creation and Utilisation of Floating Provisions’, floating provisions should not be used for making specific provisions in respect of non-performing assets or for making regulatory provisions for standard assets. The same can be used only for contingencies under extraordinary circumstances for making specific provisions in impaired accounts after obtaining board's approval and with prior permission of RBI. 5.2 Further, in terms of circular DBOD.BP.BC.87/21.04.048/2010-11 dated April 21, 2011, on ‘Provisioning Coverage Ratio (PCR) for Advances’, countercyclical provisioning buffer would be allowed to be used by banks for making specific provisions for non-performing assets, inter-alia, during periods of system wide downturn, with the prior approval of RBI. Accordingly, RBI vide circular DBOD.No.BP.95/21.04.048/2013-14 dated February 7, 2014 on ‘Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer’ has allowed banks, as a countercyclical measure, to utilise up to 33 per cent of countercyclical provisioning buffer/floating provisions held by them as on March 31, 2013, for making specific provisions for non-performing assets, as per the policy approved by their Board of Directors. 5.3 In addition to utilisation of countercyclical / floating provision up to 33 per cent of such provisions held by them as on March 31, 2013 as stated above, it has been decided that banks can use countercyclical/floating provisions for meeting any shortfall on sale of NPA i.e. when the sale is at a price below the net book value (NBV) [i.e., book value less provision held], which presently requires debit to the profit and loss account. 6. Bank Loans for Financing Promoters’ Contribution 6.1 In terms of extant instructions on Bank Loans for Financing Promoters Contribution as consolidated inour Master Circular DBOD.No.Dir.BC.14/13.03.00/2013-14 dated July 1, 2013 on ‘Loans and Advances – Statutory and Other Restrictions’, the promoters' contribution towards the equity capital of a company should come from their own resources and banks should not normally grant advances to take up shares of other companies. 6.2 It has been decided that banks can extend finance to ‘specialized’ entities established for acquisition of troubled companies subject to the general guidelines applicable to advances against shares/debentures/bonds as contained in the above-mentioned Master Circular and other regulatory and statutory exposure limits. The lenders should, however, assess the risks associated with such financing and ensure that these entities are adequately capitalized, and debt equity ratio for such entity is not more than 3:1. 6.3 In this connection, a ‘specialized’ entity will be a body corporate exclusively set up for the purpose of taking over and turning around troubled companies and promoted by individuals or/and institutional promoters (including Government) having professional expertise in turning around ‘troubled companies’ and eligible to make investments in the industry/segment to which the target asset belonged. 7. Credit Risk Management 7.1 Banks are advised that they should strictly follow the credit risk management guidelines contained in our circular DBOD.No.BP.(SC).BC.98/21.04.103/99 dated October 7, 1999 on ‘Risk Management Systems in Banks’ and DBOD.No.BP.520/21.04.103/2002-03 dated October 12, 2002 on ‘Guidance Notes on Management of Credit Risk and Market Risk’. 7.2 It is reiterated that lenders should carry out their independent and objective credit appraisal in all cases and must not depend on credit appraisal reports prepared by outside consultants, especially the in-house consultants of the borrowing entity. 7.3 Banks/lenders should carry out sensitivity tests/scenario analysis, especially for infrastructure projects, which should inter alia include project delays and cost overruns. This will aid in taking a view on viability of the project at the time of deciding Corrective Action Plan (CAP) as mentioned in paragraph 3 of our circular DBOD.BP.BC.No.97/21.04.132/2013-14 dated February 26, 2014 on ‘Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)’. 7.4 Lenders should ascertain the source and quality of equity capital brought in by the promoters /shareholders. Multiple leveraging, especially, in infrastructure projects, is a matter of concern as it effectively camouflages the financial ratios such as Debt/Equity ratio, leading to adverse selection of the borrowers. Therefore, lenders should ensure at the time of credit appraisal that debt of the parent company is not infused as equity capital of the subsidiary/SPV. 7.5 Ministry of Corporate Affairs had introduced the concept of a Director Identification Number (DIN) with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. Further, in terms of paragraph 5.4 of our Master Circular on Wilful Defaulters dated July 1, 2013, in order to ensure that directors are correctly identified and in no case, persons whose names appear to be similar to the names of directors appearing in the list of wilful defaulters, are wrongfully denied credit facilities on such grounds, banks/FIs have been advised to include the Director Identification Number (DIN) as one of the fields in the data submitted by them to Reserve Bank of India/Credit Information Companies. 7.6 It is reiterated that while carrying out the credit appraisal, banks should verify as to whether the names of any of the directors of the companies appear in the list of defaulters/ wilful defaulters by way of reference to DIN/PAN etc. Further, in case of any doubt arising on account of identical names, banks should use independent sources for confirmation of the identity of directors rather than seeking declaration from the borrowing company. 7.7 Paragraph 2.7 of our Master Circular on Wilful Defaulters states that, “with a view to monitoring the end-use of funds, if the lenders desire a specific certification from the borrowers’ auditors regarding diversion / siphoning of funds by the borrower, the lender should award a separate mandate to the auditors for the purpose. To facilitate such certification by the auditors the banks and FIs will also need to ensure that appropriate covenants in the loan agreements are incorporated to enable award of such a mandate by the lenders to the borrowers / auditors”. 7.8 In addition to the above, banks are advised that with a view to ensuring proper end-use of funds and preventing diversion/siphoning of funds by the borrowers, lenders could consider engaging their own auditors for such specific certification purpose without relying on certification given by borrower’s auditors. However, this cannot substitute bank’s basic minimum own diligence in the matter. 8. Reinforcement of Regulatory Instructions 8.1 In terms of circular DBOD.No.CAS(COD)BC.142/WGCC-80 December 8, 1980 on ‘Report of the Working Group to Review the System of Cash Credit – Implementation’, banks were advised that before opening current accounts/sanctioning post sale limits, they should obtain the concurrence of the main bankers and/or the banks which have sanctioned inventory limits. Such accounts already opened may also be reviewed in the light of these instructions and appropriate action should be taken. Further, in terms of Master Circular DBOD.No.Dir.BC.12/13.03.00/2013-14 dated July 1, 2013 on ‘Guarantees and Co-Acceptances’, banks should refrain from issuing guarantees on behalf of customers who do not enjoy credit facilities with them. 8.2 RBI reiterates the above instructions regarding restrictions placed on banks on extending credit facilities including non-fund based limits, opening of current accounts, etc. to constituents who are not their regular borrowers. Banks must take necessary corrective action in case the above instructions have not been strictly followed. Further, RBI will ensure strict adherence by banks to these instructions. As non-compliance of RBI regulations in this regard is likely to vitiate credit discipline, RBI will consider penalising non-compliant banks. 8.3 Banks are custodians of public deposits and are therefore expected to make all efforts to protect the value of their assets. Banks are required to extinguish all available means of recovery before writing off any account fully or partly. It is observed that some banks are resorting to technical write off of accounts, which reduces incentives to recover. Banks resorting to partial and technical write-offs should not show the remaining part of the loan as standard asset. With a view to bring in more transparency, henceforth banks should disclose full details of write offs, including separate details about technical write offs, in their annual financial statements as per the format prescribed in the Annex. 9. Registration of Transactions with CERSAI Currently security registration, especially registration of mortgages, is done at district level and Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is generally used to register equitable mortgages. The Government mandate to register all types of mortgages with CERSAI will have to be strictly followed by banks. In this connection, instructions contained in our circular DBOD.Leg.No.BC.86/09.08.011/2010-11 dated April 21, 2011 on ‘Setting up of Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002’ is reiterated, i.e. transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central Registry. 10. Board Oversight 10.1 The Board of Directors of banks should take all necessary steps to arrest the deteriorating asset quality in their books and should focus on improving the credit risk management system. Early recognition of problems in asset quality and resolution envisaged in these guidelines requires the lenders to be proactive and make use of CRILC as soon as it becomes functional. 10.2 Boards of banks should put in place a policy for timely submission of credit information to CRILC and accessing information therefrom, prompt formation of Joint Lenders’ Forums (JLFs)3, monitoring the progress of JLFs and adoption of Corrective Action Plans (CAPs)4, etc. There should be a periodical review, say on a half yearly basis, of the above policy. 10.3 The boards of banks should put in place a system for proper and timely classification of borrowers as wilful defaulters or/and non-cooperative borrowers5. Further, Boards of banks should periodically review the accounts classified as such, say on a half yearly basis. Yours faithfully, (Rajesh Verma) Chief General Manager Annex Disclosure of Write-Offs & Technical Write-Offs Instructions contained in our circular DBOD.BP.BC.No. 79 /21.04.018/2009-10 dated March 15, 2010 on ‘Additional Disclosures by banks in Notes to Accounts’ specifically require banks to disclose the amounts written off during the year while giving details of movement in non-performing assets (NPAs). The format specified in the said circular stands modified as under. (Amount in Rs. crore) Particulars Current year Previous year Gross NPAs6 as on 1st April of particular year (Opening Balance) Additions (Fresh NPAs) during the year Sub-total (A) Less:- (i) Upgradations (ii) Recoveries (excluding recoveries made from upgraded accounts) (iii) Technical/ Prudential7 Write-offs (iv) Write-offs other than those under (iii) above Sub-total (B) Gross NPAs as on 31st March of following year (closing balance) (A-B) Further banks should disclose the stock of technical write-offs and the recoveries made thereon as per the format below: (Amount in Rs. crore) Particulars Current year Previous year Opening balance of Technical/ Prudential written-off accounts as at April 1 Add: Technical/ Prudential write-offs during the year Sub-total (A) Less: Recoveries made from previously technical/ prudential written-off accounts during the year (B) Closing balance as at March 31 (A-B) 1 SMA 2 – Special Mentioned Account 2 as defined in our circular DBOD.BP.BC.No.97/21.04.132/2013-14 dated February 26, 2014 on ‘Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)’ 2 CRILC as mentioned in DBS’ circular DBS.No.OSMOS. 9862/33.01.018/2013-14 dated February 13, 2014 on ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’ 3, 4 and 5 JLF, CAP & Non-Cooperative Borrowers - as detailed in our circular DBOD.BP.BC.No.97/21.04.132/2013-14 dated February 26, 2014 on ‘Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP). 6 *Gross NPAs as per item 2 of Annex to DBOD Circular DBOD.BP.BC.No. 46/21.04.048/2009-10 dated September 24, 2009 which specified a uniform method to compute Gross Advances, Net Advances, Gross NPAs and Net NPAs. 7 Technical or prudential write-off is the amount of non-performing loans which are outstanding in the books of the branches, but have been written-off (fully or partially) at Head Office level. Amount of Technical write-off should be certified by statutory auditors. (Defined in our circular reference DBOD.No.BP.BC. 64 /21.04.048/2009-10 dated December 1, 2009 on Provisioning Coverage for Advances)  Top

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Income Tax - details of eligible deductions

Rules for Issuing Pan Card

 

Ministry of Finance21-February, 2014 

 

The Income Tax Department has made changes in rules for issuing Permanent Account Number (PAN) Card. It has vide notification S.O. 3794 (E) dated 23.12.2013, amended Rule 114 of the Income-tax Rules, 1962 to provide , inter alia, that the application for allotment of PAN shall be accompanied by proof of date of birth of the applicant in addition to proof of identity (POI)/proof of address (POA). The notification has also amended the prescribed list of documents which can be furnished as POI/POA and Aadhar Card has been included as one of the POI and POA document.

The number of PAN Card holders in the country as on 17.2.2014 is 20.24 crores. So far, 9.73 lakhs PAN have been issued where Aadhar has been captured and seeded in PAN database for maintain uniqueness.

Identification of bogus/duplicate PAN Card is an integral part of the data management system. In order to ensure that bogus PAN cards are not issued, the Income-tax Department has started capturing Aadhar number, as mentioned in para above, in PAN application forms in cases where it is available so that the additional uniqueness is brought in PAN allotment process.

This information was given by the Minister of State for Finance, Shri J.D. Seelam in written reply to a question in Lok Sabha today.

*****

DSM/MJPS/KA
(Release ID :104125)

Efforts have failed to save banks from the rapid rise in incidents of fraud.

NEW DELHI: Indian banks lost as much as Rs 17,284 crore during 2012-13 due to fraud, in a near four-fold jump over the previous fiscal, ET has found out from information obtained through Right to Information Act.

At a time when the lenders were reeling under burgeoning non-performing assets, 62 banks filed a total of 26,598 cases involving a sum equivalent to, for example, three years' budget of Indian Space Research Organisation.

Many of these cases are being investigated by the CBI or the state police. Although private banks account for about 75% of the total number of cases registered, these lenders lost Rs 970 crore while the state-run banks lost as much as Rs 16,314 crore during the year. In comparison, all banks put together lost Rs 4,448 crore to frauds during 2011-12.

According to the data, Punjab National Bank was the worst hit, with cases of fraud involving Rs 1,375 crore while Canara Bank lost Rs 1,166 crore. Other public sector banks that lost more than Rs 1,000 crore include State Bank of India, Bank of India and Oriental Bank of Commerce.

Among the private sector banks, ICICI Bank topped the list with 5,280 cases of fraud, followed by Citibank and Standard Chartered bank, with 2,934 and 2,568 cases, respectively. These three banks together lost Rs 187 crore.

Several banks disputed the figures furnished by the Reserve Bank of India under the RTI Act.

Canara Bank's spokesperson said the bank had reported 78 cases of fraud amounting to Rs 583 crore while the central bank's data puts the figures at 156 cases and Rs 1,166 crore. Similarly, Standard Chartered Bank in its official response said it lost Rs 18.85 core in 1,284 cases while the RBI said the bank had lost Rs 37 crore in 2,568 cases. Citibank and PNB also disagreed with the data.

"The information you have provided is not in accordance with our records, and significantly overstates both the number and the value of the cases," said a Citibank spokesperson. RBI did not respond to detailed query mailed by ET in this regard.

The central bank had in July 2012 issued detailed guidelines to banks on how to report and tackle fraud cases. The guidelines specify seven different forms of fraud such as misappropriation, fraudulent encashment, cheating and forgery, and irregularities in foreign exchange transactions, among others.

"Incidence of frauds, dacoities, robberies, etc, in banks is a matter of concern. While the primary responsibility for preventing frauds lies with banks themselves, the Reserve Bank of India (RBI) has been advising them from time to time about the major fraud-prone areas and the safeguards necessary for their prevention," said the circular.

Earlier, in March 2009 the central bank had directed all the banks to report names of professionals who facilitated the perpetration of fraud to the Indian Banks Association (IBA). The IBA prepares a "caution list" of such people that is circulated among banks.

However, the data for 2012-13 reveals that such efforts have failed to save banks from the rapid rise in incidents of fraud. 

 

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/indian-banks-lose-rs-17284-cr-in-fraud-cases-reveals-rti/articleshow/30704097.cms

State Bank of Patiala, LIC HF and Syndicate Bank issue possession notice to Marg Group’s Marg Junction

CHENNAI: One of Chennai's largest commercial realty projects, Marg Group's Marg Junction, has been slapped with a possession notice by the State Bank of Patiala for non-payment of debt of Rs 250 crore to a consortium of lenders. This after potential buyer Shriram Properties expressed only a limited appetite for its liabilities.

Marg Junction, spread over 1.83 million square feet and coming up at Karapakkam, near the city's IT corridor, is being built by Marg company Riverside Infrastructure. Three lenders have funded it — State Bank of Patiala, LIC Housing Finance and Syndicate Bank. The loans have been secured by the corporate guarantee of Marg as well as the personal guarantee of its promoter GRK Reddy.
State Bank of Patiala issued the possession notice on February 15. Marg owes it about Rs 75 crore, LIC Housing Finance Rs 117 crore and Syndicate Bank Rs 58 crore. The three lenders, who declared Marg's dues as NPAs between June and September 2012, have been trying to salvage the situation through recourse to the Sarfaesi Act, a 2002 law that allows lenders to auction properties of long-defaulting borrowers. But they weren't able to wrap it up fast, as Marg was trying to exit the project.

In 2012, it started talks with Shriram Properties. And in September 2013, Shriram signed a term-sheet for acquiring the project. In its communication to Marg on February 7, a copy of which ET has, Shriram has, however, said it could assume bank liabilities to the extent of Rs 200 crore, and no more. The reasons it has cited for the same include "circumstances" and "uncertainties" such as a requirement for further approvals, further civil works, renegotiation of rentals as well as re-engagement with contractors.

Shriram Properties has also said that, if this suits Marg, it would be able to raise the necessary funding for a one-time settlement on or before March 31. Shriram Properties MD M Murali confirmed the development. "We are keen on buying the project, provided our offer is accepted by Marg and the bankers. Our offer takes into account the current market conditions," he told ET over phone.

Marg's CMD played down the development. "Shriram Properties is only looking to buy the mall portion. We are in talks with other parties to sell the service apartments, business centre and others. This is not a setback". The lenders could not be reached for comments. Marg Junction's first phase is designed to house a mall of 7.5 lakh sq ft while the second phase will house serviced residences, a business centre, a banquet hall and a club.

In 2011, Marg Junction signed Shoppers Stop, PVR Cinemas and Hyper City as its anchors. According to Marg's 2013 annual report, it signed up brands such as Levi's, Titan, Nike and Puma while it received expressions of interest from Blu-O, Reliance Trends and Reliance Digital. The average monthly rental as on March 31, 2013, was Rs 76 per sq ft.

Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit

Ministry of Finance17-February, 2014 

Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit

The Union Finance Minister Shri P. Chidambaram has announced a Moratorium period for all education loans taken-up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will benefit to the tune of approximately Rs2,600 crore. Presenting the Interim Budget in the LokSabha today, the Union Finance Minister ShriChidambaram said that a sum of Rs 2,600 crore will be provided in the current financial year itself and this amount will be transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme for interest subsidy was introduced in 2009-10 in respect of education loans disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009 struggled to pay interest during the period of study and they deserved some relief. Shri P. Chidambaram informed that ten years ago, only a few thousand students- mostly the well-connected- got education loans. At the end of December 2013, Public Sector Banks had 25,70,254 student loan accounts and the amount outstanding was Rs. 57,700 crore. *** DSM/RC/SK (Release ID :103727)

28,000 get probationary officer jobs in banks

Hyderabad, Feb 12:

In what comes as a great relief for those eyeing bank jobs, 28,118 candidates were allotted jobs in 21 participating banks by the Institute for Banking Personnel Selection (IBPS). 

 

In the list hosted by the IBPS, which conducted the Common Written Examination for Probationary Officers and Management Trainees (PO/MT-II), 13,442 unreserved posts, 4,415 vacancies for scheduled castes, 2,135 for scheduled tribes, and 7,608 for other backward communities, among others, were allotted to various banks according to their requirements. 

 

For most of the aspirants this is good news because the validity of their scores would have expired next month. If they had not been allotted the jobs, they would have had to write the exam again. 

 

With the announcement of a consolidated list, the PO–II allotment is deemed to have been completed.

 

Among the most competitive exams held in the country, this time about 7.50 lakh candidates appeared for the written test. Of these, 61,339 candidates qualified for the interview and 45,000 were declared successful/eligible for jobs in line with the vacancies. And, of these, 28,118 candidates were allotted jobs. 

 

The IBPS has already conducted PO–III written examination and completed interviews. The results are expected to be announced soon. 

 

http://www.thehindubusinessline.com/economy/28000-get-probationary-officer-jobs-in-banks/article5681355.ece?utm_source=thehindu&utm_medium=widget&utm_campaign=Widget+Promo

SBI declares war on NPAs as bad loans spurt

MUMBAI: Faced with rising bad loan problems, the country's largest lender State Bank today announced a new roadmap which will limit slippages and also give early warning on stressed assets.

The bank also announced slew of initiatives in the areas of cost control, productivity improvement, better incentives and overhauling of HR policies.

"We have decided to move stressed assets recovery branches that were reporting to the national banking group (NBG) so as to have better focus and outcomes," SBI chairperson Arundhati Bhattacharya said while announcing third quarter numbers.

"With that in mind, we have now changed the structure and created four general managers in all the four zones--North, South, East and West--who will be reporting to the stress management group and will actually be owning these stress asset recovery branches in the circles," she added.

The bank's gross non-performing assets (NPA) ratio deteriorated to 5.73 per cent in the reporting quarter as against 5.30 per cent a year ago.

The bank also made it easier for corporate account group (CAG) and mid-corporate group (MCG) to migrate all of their accounts, which need hard recovery measures, into CAG.

"With this we hope, the CAG will be much more focused and will be able to bring about faster resolution," she said.

The bank also formed various committees which will monitor loans that are showing early signs of weakness. "The other thing which we have done is we have created various committees which will look into not only the stressed assets but those accounts which are beginning to display weakness," she said.

The largest of the committees which look at loans above Rs 500 crore will be headed by Bhattacharya herself, while the committee which will track loans in the Rs 100-500 crore range will be headed by Pradeep Kumar, managing director (corporate banking).

Those in Rs 50-100 crore range will be headed by Soundara Kumar, deputy managing director (stress asset management group), Bhattacharya said.

The committees which will monitor loans between Rs 25 and 50 crore will be headed by CGMs of the circle and CGMs of the verticals. Loans of Rs 5-25 crore ticket size will be looked by general managers at circles while those in the Rs 1-5 crore will be tracked by deputy general managers, she said.

These committees will help the bank to do a weekly review of the accounts, conduct analysis, take immediate steps and follow up action so as to ensure that weak accounts get immediate attention and their chances of becoming NPAs are minimised.

"In these reviews, we also try to come up with whatever solution necessary such as restructuring, sale of assets and other innovative measures. With this, we hope we will be in a better position to control the kind of slippages that we have been seeing," the chairperson said.

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/sbi-declares-war-on-npas-as-bad-loans-spurt/articleshow/30409662.cms

AIBOA shall live upto the expectation along with other Unions

 ALL INDIA BANK OFFICERS' ASSOCIATION

Circular No.5/VI/2014

February 11, 2014

 

To:

ALL UNITS / STATE COMMITTEES

 

Dear comrades,

Congrats !  Bankmen!!

You have made it

The strike of 48 hours,  a resounding success

 

In the background of the 8^th round of wage talks inching from 9.5% to 10% against the UFBU expectation of substantial increase necessitated to reply their rigid action on 27^th JANUARY 2014 on the negotiation table, by serving 48 hours strike notice.

 

Reports are flowing uninterruptedly from the all over the country about the successful observance of strike call, as the entire workforce have felt the insult inflicted by IBA, who have failed to live upto the expressions made by IBA Chairman in the first round of discussions held on 22.02.2013 that the settlement would be concluded on 14^th August 2013 with the reasonable, respectable and comparable wage revision compared with external factors.

 

Having earned a gross profit of Rs.1,12,290 crores [2011-12], the offer of IBA is too meagre as against the UFBU’s minimum demand of 30% on payslip components, submitted with sufficient details to IBA.  In the CLC[C] discussions at Delhi on 6^th February 2014 too, the approach of IBA was too rigid.

 

Adding fuel to fire, the statement of Hon’ble Finance Minister in the meeting at Delhi yesterday, painted a picture that the entire profit earned are to be set apart for the wage increase for the Bankmen.  The expressions of the FM is really unfortunate and a provocative one.

 

If the Government and Banker set apart of 10% of the gross profit earned as at 31.03.2012, towards payslip components that step will be appreciated.  If the four defaulters of the country [ie] Kingfisher Airline Rs.2673 crores, Winsome Diamond and Jewellery Co., Ltd., Rs.2660 crores, Electrotherm India Ltd., Rs.2211 crores and Zoom Developers P Ltd., Rs.1810 crores amounting Rs.9354  crores would also suffice the minimum demand of the entire Banking workforce.

 

As per the practice, UFBU is to take call on the developments in toto and expected to chalk out the further agitational programmes of higher form.

 

Bankmen! You have done it !!

AIBOA shall live upto the expectation along with other Unions

In the Banking Industry.

 

With warmest greetings of the struggle.

 

Yours comradely,

 

 /S.NAGARAJAN/

GENERAL SECRETARY

Bank unions to go on two-day strike from Monday ( 10th & 11th Feb.2014 )

NEW DELHI: Operations at public sector banks are likely to be impacted as employee unions have decided to go on a two-day nation-wide strike from Monday to press for wage revision.

During the conciliation meeting held on February 6 before the Chief Labour Commissioner, the IBA did not come up with any improvement in the wage offer of 10 per cent hike in the pay package, United Forum of Bank Unions (UFBU) Convener M V Murali told PTI.

As conciliation proceedings remained inconclusive, he said, UFBU has decided to go on two day nation-wide from February 10.

Banks including country's largest lender State Bank of India have informed customers in advance about the likely inconvenience they could face due to the strike.

Private sector players such as ICICI Bank, HDFC Bank and Axis Bank are expected to function normally.

All India State Bank Officers' Federation and All India State Bank of India Staff Federation, being part of UFBU will, also participate in the strike, SBI said in a statement.

General Secretary of National Organisation of Bank Workers, Ashwini Rana said as the offer made by bank management is not in line with the rising inflation, the unions are compelled to protest.

Staff of public sector banks had gone on a day's strike nationwide on December 18, after the discussions with IBA on wage revision had failed on December 14. The wage revision of public sector bank employees has been due since November 2012.

UFBU is an umbrella organisation of nine bank employees and officers unions.

There are 27 public sector banks in the country with employees strength of about 8 lakh. There are about 50,000 branches of these banks across the country.

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/bank-unions-to-go-on-two-day-strike-from-monday/articleshow/30098260.cms

Minutes of Conciliation Proceedings held today

Today's Conciliatory meeting (06-02-2014) inconclusive
Strike stands
Observe 48 hours Strike on 10th and 11th February 2014

Subsequent to the call for 2 days' All India Bank Strike on 10th and 11th February 2014, the Conciliation Proceedings were held today before Shri B.K. Sanwariya, Chief Labour Commissioner (Central) at New Delhi. IBA was represented by Shri M.V. Tanksale, Chief Executive, Shri K. Unnikrishnan, Dy. Chief Executive. The meeting was also attended by the officials from Department of Financial Services, Government of India. From the UFBU side, the leaders of all constituent unions were present.

We reproduce the Minutes of Conciliation Proceedings held today at New Delhi, for the information of members.

"The representatives of the Indian Bank's Association (IBA) submitted written comments. A copy of the same was given to the representatives of United Forum of Bank Unions (UFBU). Prolonged discussions were held on the points submitted by the parties.

The representatives of the Indian Bank's Association (IBA) stated that negotiating committee convened meeting on 17.01.2014 with the representatives of UFBU. IBA enhanced the offer from 5% on salary slip to 9.5% on the salary slip. Again meeting was held on 27.01.2014 with the representatives of UFBU and an improved offer of 10% was made. Representatives of the IBA requested that the next meeting with the representatives of UFBU can be made on 13.02.2014 and UFBU should not go on strike on 10th & 11th February 2014 but the demand for further increase beyond 10% can be settled during ensuing Bi-lateral meetings.

CLC(C) welcomed the views of the IBA and requested the representatives of UFBU to accept the offer for bilateral meetings. CLC(C) also requested the representatives of IBA to arrange the bilateral meeting before 10th & 11th February 2014.

CLC(C) further made appeal to the representatives of UFBU to withdraw the proposed strike call on 10th & 11th February 2014 and should come forward for bilateral meeting as proposed by the representatives of IBA.

The representatives of UFBU stated that 10% increase offered by the IBA is not acceptable and there should be further forward improvement in the offer, then only UFBU may reconsider the deferment of the proposed strike call."

Inasmuch as the Conciliation Proceedings remained inconclusive, the 2 days' All India Bank Strike on 10th & 11th February 2014 stands.

Comrades - Implement the strike action programmes in full with absolute display of solidarity and strength and make the 2 days' All India Bank Strike on the 10th & 11th February 2014, a grand success.

Comrades, all our units are called upon to make all-out efforts and make the strike action a total success. Please send us the report on the implementation of the strike.

Note:
Please note that the strike action will begin from 6 am on 10th (Monday) and accordingly units should ensure that those employees who work on shifts in clearing department, service branch, night clearing, etc. should participate in the strike without any deviation. As already clarified, all probationers should join the strike call.

Red Salutes to All India Oriental Bank Officers’ Association as it represents 100% officers in the Bank

 ALL INDIA BANK OFFICERS' ASSOCIATION

Circular No.4/VI/2014

January 31, 2014

 

 

To:

ALL UNITS / STATE COMMITTEES

 

Comrades,

 

COM.NARENDRA KOTIAWALA, JOINT GENERAL SECRETARY

ALL INDIA ORIENTAL BANK OFFICERS’ ASSOCIATION

APPOINTED AS OFFICER DIRECTOR

ON THE BOARD OF ORIENTAL BANK OF COMMERCE.

 

Government of India vide its notification F.No.6/5/2013-BO-I dated 30.01.2014 have appointed Com.Narendra Jivaraj Kotiawala, Joint General Secretary of AIOBOA as officer Director in the Board of “OBC” with effect from 30.01.2014 as AIBOA nominee for a period of three years.

 

All India Oriental Bank Officers’ Association represents 100% officers in the Bank led by our National President Com.S.S.Shishodia as General Secretary too.

 

Com.Narendra succeeds Com.S.S.Shishodia who was the representative of officers in the Bank’s Board for a period of 3 years upto third week of July 2013.

 

Com.Narendra is the General Secretary of Maharashtra State Committee of AIBOA and also Joint Secretary of AIBOA.  At present, he is the Faculty Member of the OBC Training College at Mumbai.  Good at academic besides a fine social worker too, he leads the Western Region unit of AIOBOA.

 

AIBOA congratulates AIOBOA for its contribution successively to the officer’s community in OBC coupled with holding the banner of AIBOA in the Industry.

 

Red Salutes to AIOBOA and its leadership.

 

Com.Narendra shall continue to perform the assigned tasks in his style within the Board of Bank and also to secure the best benefits to officer’s workforce of OBC during his tenure, of course besides the prime job of contributing his best in the decision making of the highest policy making today of the Bank on the rich traditions of AIBOA and come out with flying colours.

 

We wish him all the best in the new assignment.

 

Congrats Com.Narendra.

 

Yours comradely,

 

/S.NAGARAJAN/

GENERAL SECRETARY