Apex court asks RBI to sub­mit names of loan de­fault­ers

The Pak Banker - - FRONT PAGE -

The In­dian Supreme Court has asked the Re­serve Bank of In­dia (RBI) to pro­vide the names of cor­po­rate loan de­fault­ers with out­stand­ing debt of at least 5 bil­lion ru­pees ($73.11 mil­lion), as well as de­tails of re­struc­tured as­sets.

The RBI would need to pro­vide the in­for­ma­tion within two months, though it could keep de­tails un­der "sealed cover", a di­rec­tive from the Supreme Court said.

The di­rec­tive comes in the wake of a pub­lic in­ter­est lit­i­ga­tion suit seek­ing to look into loans made by Hous­ing & Ur­ban De­vel­op­ment Co Ltd to some com­pa­nies.

"We di­rect the RBI to file a de­tailed af­fi­davit men­tion­ing about the list of the com­pa­nies which are de­fault­ers of loans," Chief Jus­tice T. S. Thakur said as he read out the Supreme Court's in­terim or­der. The RBI had pre­vi­ously re­sisted prior court or­ders to re­veal the names of com­pa­nies who have de­faulted, say­ing to do so risked breach­ing con­fi­den­tial­ity rules.

In­dia's bank­ing sec­tor, dom­i­nated by two dozen state-run lenders, is suf­fer­ing from its high­est stressed-as­sets ra­tio in 13 years as an eco­nomic slow­down hits com­pany earn­ings, ex­pos­ing the sec­tor's his­tory of prof­li­gate lend­ing. The di­rec­tive from the court has not yet been up­loaded on its web­site.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.