Under the watchful eyes of five wise men, who know the industry well, banks will not find it easy to hoodwink the system, says Tamal Bandyopadhyay. IMAGE: Kundapur Vaman Kamath, former ICICI CEO and former chief of the New Development Bank of BRICS nations, leads the team that will look into finer aspects of the RBI's resolution plan. Photograph: Aly Song/Reuters None could miss the collective sigh of relief from the bankers' community on the Reserve Bank of India's decision to open a restructuring window for stressed loans. Those accounts, which had been in default for not more than 30 days as on March 1, 2020, can be restructured if the borrowers are unable to service them because of their businesses being affected by the COVID-19 pandemic. The loans can be restructured, among others, by funding interest, converting part of debt into equity and giving the borrowers more time to pay up. The banks must disclose such recast and set aside 10 per cent of the exposure to make provision for … [Read more...] about The 5 wise men who will decide corporate loan recast
What will be its impact on the banks's balance sheets? Illustration: Uttam Ghosh/Rediff.com In the last week of March, the Reserve Bank of India asked all lending institutions to offer a three-month moratorium to their borrowers, affected by the COVID-19 pandemic, on payment of loan instalments between March and May. Later, the banking regulator extended it by three months, till August. What's next? While the moratorium has ended, a new window is being opened for restructuring those loans that the borrowers are unable to service because of their businesses being affected by the pandemic. The loans can be restructured by funding interest, converting part of debt into equity and giving the borrowers more time -- as much as two years -- to pay up. In percentage terms, the number of borrowers availing of the moratorium has been progressively decreasing over the past months, but there is no clarity yet on how many would seek restructuring of their loans and the impact this exercise would … [Read more...] about Rs 8 trillion of banks loans will be restructured!
A student has been jailed for 56 days for posting offensive comments on Twitter about the on-pitch collapse of Bolton Wanderers footballer Fabrice Muamba. Liam Stacey was arrested after his tweets were reported to police by Twitter users from across Britain, including the former England striker Stan Collymore. The 21-year-old pleaded guilty to the Racially Aggravated s4A Public order Act 1986. He posted his offensive comments shortly after Muamba suffered a cardiac arrest during his team's FA Cup quarter-final tie against Tottenham Hotspur on 17 March. Stacey sobbed throughout the hearing and held his head in his hands when he was sentenced. He was led away in handcuffs. District judge John Charles told Stacey: "It was racist abuse via a social networking site instigated as a result of a vile and abhorrent comment about a young footballer who was fighting for his life. At that moment, not just the footballer's family, not just the footballing world but the whole world were literally … [Read more...] about Student jailed for racist Fabrice Muamba tweets