Page 7 - Banking Finance January 2018

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

Banks set to crack down Corporation Bank records Rs.1,035-cr loss
With provisioning for non-performing assets (NPAs) reaching Rs.2,535.95 crore
on big loan defaulters
during the second quarter of this fiscal, Cor-
Banks are set to refer a majority of poration Bank registered a loss of Rs.1,035.2
the 28 loan crore. The bank had recorded a net profit
defaulters of Rs.206.28 crore during the second quar-
cited in the ter of 2016-17.
Reserve Bank
Provisions (other than tax and contingencies)
of India's
went up to Rs.2,668.81 crore (Rs.826.80
(RBI's) second list to bankruptcy
courts, as the central bank prods crore). Of this, provisions for NPAs stood at
lenders to speedily resolve bad loans Rs.2,535.95 crore (Rs.790 crore) during the period.
clogging their balance sheets. After The bank's unaudited (reviewed) financial results for the second quarter, which
its first list of 12 large defaulters was was submitted to the stock exchanges, said that in terms of the directions of
sent to banks in June, RBI sent a sec- the RBI, in respect of 11 NPA accounts covered under the Insolvency and Bank-
ond list of 28 troubled companies in ruptcy Code (IBC), the aggregate provision required for such accounts is
late August, accounting for Rs.2 tril- Rs.1,735.83 crore.
lion of bad loans, asking lenders to Of this, the bank provided Rs.924 crore during the quarter. The balance amount
find resolution plans for them or start shall be provided by March 31, it said. The gross NPA of the bank increased to
insolvency proceedings. Rs.20,684.87 crore during Q2 against Rs.15,611 crore in the year-ago period.
And, the net NPA rose to Rs.13,082.59 crore (Rs.9,560.74 crore). The gross NPA
ICICI raises $500 million stood at 15.28 per cent (10.81 per cent), and net NPA at 10.24 per cent (6.91
ICICI Bank has raised $500 million in per cent).
a benchmark bond sale to overseas
investors at a coupon of 3.833%. The Aadhaar card to reduce bank fraud
10-year issue was through the Dubai There has been $3 billion loss in the past year
branch of ICICI Bank, an investment due to fraud in the banking sector and the link-
banking source said. The RegS issue ing of bank accounts with Aadhaar can drasti-
(bonds sold in the US but to cally reduce such frauds, said A.B. Pandey, chief
nonAmerican investors) is part of executive officer of Unique Identification Au-
India's largest private sector lender's thority of India ( UIDAI), while speaking at the
$7.5-billion global medium term note fifth Global Conference on Cyber Space (GCCS)
programme. in the national capital.

BANKING FINANCE | JANUARY | 2018 | 7

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