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NPAs (Indradanush plan 7 elements (Bank boards bureau (body of eminent…

- - - - The government had budgeted ₹65,000 crore for infusion into (PSBs) through recapitalization bonds this fiscal, of which ₹42,000 crore is still to be allotted.
      - With the additional ₹41,000 crore of capital infusion by 31 March, the government will be infusing a total ₹83,000 crore into public sector banks this year
    - - at what cost, for how long
      - whether recapitalisation alone is enough
      - budgetary deficit benchmarks
      - Bankers become lackadaisical toward debt recovery and tend to escalate provisions and contingencies to be adjusted against the fresh capital
      - implies cross-subsidization: dividend-paying PSU banks subsidizing the non-dividend paying. Ultimately, systemic efficiency suffers
  - - - By RBI
      - to collect, store and disseminate credit data
        to banks
- - - - Interest/ Principle
        overdue for period of 90 days
    - - Short duration crops
        
        principal or interest overdue for 2 crop seasons
      - Long duration crops
        
        principal or interest overdue for 1 crop seasons
  - - - show earlier sign to fall between the Standard and Sub Standard (NPA) category
- - - - lack of interest of promoters
      - state fiscal capacity
  - - - to protect the value of the assets and prevent their distress sale under the insolvency and bankruptcy code till demand for power picks up
    - - SBI led bankers' consortium took over unsustainable debt of stressed power plants to avoid their liquidation
- - - - database of credit information which is accessible by all the stakeholders
      - generally captures all the relevant information in one large database on the borrower
      - managed by a public authority as RBI
      - lenders will have to mandatorily
    - - Credit assessment and pricing by the bank
      - Risk-based, countercyclical and dynamic provisioning of bank
      - Supervision and early intervention by regulator
      - Understanding the transmission of monetary policy working and its bottlenecks.
      - Restructuring the stressed bank credit
- - - - Small and Medium Enterprise (SME) resolution approach < 50 cr
        
        resolution plan within 90 days
      - Bank-led resolution approach - 50 to 500 cr
        
        banks would sign inter-creditor agreement
        
        lead bank
        
        resolution plan has to be approved by voting by lenders holding at least 66 per cent of the debt
        
        independent steering committee appointed by the Indian Banks Association (IBA) has to validate the process within 30 days
      - AMC/AIF led resolution approach - above Rs.500 crore
        
        AIF would raise funds from foreign and institutional investors
        
        Banks may also invest if they wish
        
        Besides, AIFs can also bid for assets in NCLT.
      - NCLT/IBC approach
      - Asset-trading platform