Connect with us

Business

PNB claims expected recovery of Rs 1,800 cr from “Mission Gandhigiri”

Published

on

Punjab National Bank
Punjab National Bank (PNB). (File Photo: IANS)

New Delhi, April 20 (IANS) State-run lender Punjab National Bank is expected to recover around Rs 1,800 crore from its non-performing assets (NPAs) recovery mechanism — “Mission Gandhigiri” — which will soon complete one year of operation.

A senior bank official told IANS the mission, was launched in May 2017, had consistently delivered positive results with an average recovery of Rs 150 crore from the initiative.

“The mission was born out of the need to name and shame defaulters to increase societal pressure and urge them to pay back. Mission Gandhigiri has a dedicated recovery team across all circles of the bank,” the official, who did not want to be named, told IANS.

Accordingly, the passive recovery mechanism entails the team members to “visit the borrowers’ office or residence and sit their silently with placards that have hard-hitting messages such as ‘It is public money, please repay the loans’.”

On the legal side of the operation, following the government’s directions regarding wilful defaulters, the bank has declared 1,084 wilful defaulters.

“Due to PNB’s aggressive stance towards wilful defaulters, 150 passports have been impounded over the past few months,” the official said. Additionally, over the last 9 months, the bank has also lodged 37 FIRs against defaulters.

The bank is also leveraging data analytics for loan recovery and risk management.

“We have tied up with a leading credit agency and with the help of a third-party expert analytics, we will now be able to get access to contact information of PNB defaulters who have good credit record with other lenders,” the official said.

“This partnership is a part of the larger strategy to deploy technology to strengthen internal systems. This partnership will not only help the bank with loan recovery but will also help identify and automate profitable lending strategies and minimise credit and fraud risk,” the official said.

The bank has also recently started works towards “improving internal systems by incorporating analytics and Artificial Intelligence for reconciliation of accounts”.

In addition, two special OTS (One-Time Settlement) schemes have helped the bank to accelerate NPA recovery.

“From an average of recovering loan amount from 70,000-80,000 NPA accounts in a year, this move has resulted in recovery in 225,000 NPA accounts over a span of 10 months,” the official added.

“These schemes apply to small NPA accounts helping defaulters come out of debt.”

IANS

Business

Fiscal slippage remains a risk for rate cut: Report

Published

on

India economy

New Delhi, Jan 17 While concerns of liquidity, coupled with declining inflation, may have prompted the industry to expect a rate cut in RBI’s Monetary Policy Committee (MPC) meeting from February 7, fears of fiscal slippage may turn out to be a spoiler, a report said.

“There is a high likelihood of a change in RBI stance from ‘calibrated tightening’ to ‘neutral’ with a possible rate cut in the next MPC meeting. Fiscal slippage, however, continues to be a risk for rate cut,” JM Financial said in its report on Thursday.

Though the government maintains confidence in meeting the 3.3 per cent fiscal deficit target for this fiscal, the deficit in the first eight months till November stands at Rs 7.17 lakh crore, or 114.8 per cent of the Rs 6.24 lakh crore full year’s target.

Ahead of the RBI’s monetary policy review, India Inc on Thursday urged the Reserve Bank of India (RBI) to cut its interest rate and the cash reserve ratio (CRR) to infuse liquidity in the economy and boost growth.

In a meeting with RBI Governor Shaktikanta Das, who will preside over his first MPC meeting on February 7, leading industry chambers also suggested various measures to ease the ongoing liquidity crunch and reduce the high cost of credit.

JM Financial has predicted that CPI inflation over the next three months to inch up from the current levels, but will remain in the range of RBI’s forecast, which is 2.7 per cent to 3.2 per cent.

The double digit food inflation during 2008-14 was tamed to mid-single digits over the last four years owing to easing agri-imports in a declining global agri-commodity price environment and steady yield improvements, it said.

The report, however, mentioned that in the last three months, food inflation has turned negative and that its study indicates a build-up of excess supply in several food categories (pulses, fruits and vegetables, sugar, milk etc.) exerting price pressure.

“Liquidity challenges have also adversely impacted economic activity, as per our channel checks,” it added.

The report also takes note of liquidity challenges in the rural economy saying the low food inflation does have calming impact on the overall inflation, but a sustained low inflation regime can also lead to adverse impact on rural income and can be a cause of social unrest, it warns.

Continue Reading

Business

Sensex ends 52 points up, Nifty holds 10,900

Published

on

Sensex Nifty Equity

Mumbai, Jan 17: Amid mixed global markets and the ongoing corporate earning session, Indian equities ended higher on Thursday. Ahead of the release of quarterly results by index heavyweights, the Sensex closed with a 52 point gain while the Nifty ended above 10,900.

According to market participants, investors were cautious ahead of the third quarter results by Reliance Industries and Hindustan Unilever, to be announced later in the day.

The S&P BSE Sensex closed 52.79 points of 0.15 per cent higher after it shuttled between a high of 36,468.42 and a low of 36,170.80.

It opened close to 100 points up at 36,413.60 from its previous close of 36,321.29.

The broader Nifty ended in the green, up 14.90 points and 0.14 per cent.

Oil and gas and finance scrips led the gains on the Sensex. The index pivotal, banking stocks erased early losses to end flat while the healthcare stocks declined 0.90 per cent.

Stock-wise, Axis Bank, HCL, HDFC, TCS and Kotak Mahindra gained in the range of 1 to 2 per cent.

In contrast, Sun Pharma lost over 5 per cent followed by Yes Bank which declined over 3 per cent.

State Bank of India, Bajaj Finance, Hindustan Unileiver declined between 1 to 2 per cent.

Globally, markets traded on a mixed note amid political uncertainty in the UK over Brexit and the longest-ever partial shutdown of the US government.

However, British Prime Minister Theresa May won a confidence vote in the House of Commons on Wednesday, averting any immediate risk of an early general election.

IANS

Continue Reading

Business

RBI relaxes external commercial borrowing norms

Published

on

Reserve Bank of India

New Delhi, Jan 16 : The Reserve Bank of India (RBI) on Wednesday announced a new framework for external commercial borrowings (ECBs) and rupee-denominated bonds in a bid to improve ease of doing business.

As per the new framework, all eligible borrowers can now raise external commercial borrowings up to $750 million or equivalent per financial year under the automatic route, replacing the existing sector-wise limits.

It also set the minimum average maturity period at three years for all external commercial borrowings irrespective of the amount.

Previously, the RBI had only allowed companies to borrow up to $50 million for three years. For funds beyond $50 million, companies had to borrow for at least five years.

“Tracks I and II under the existing framework are merged as ‘Foreign Currency-denominated ECB’ and Track III and Rupee-denominated Bonds framework are combined as ‘Rupee Denominated ECB’ to replace the current four-tiered structure,” the RBI said in a statement.

It also expanded the list of eligible borrowers allowing all entities eligible to receive foreign direct investment to borrow under the ECB framework.

Continue Reading

Most Popular