THE BAT­TLE AGAINST BAD LOANS

`10 lakh crore. How did we get there?

India Today - - THE BIG STORY RBI -

2007-2008:

With eco­nomic growth strong, ir­ra­tional ex­u­ber­ance leads to un­scrupu­lous lend­ing

2008:

Global slow­down sets in, growth takes a hit

2014:

The RBI cre­ates a large loans data­base (CRILC) to mon­i­tor the sta­tus of all loans over `5 crore

2015:

The RBI ends the abil­ity of banks to re­struc­ture projects without terming them as NPAs. Bad loans in­crease to `2.67 lakh crore at the end of March 2015 from `2.16 lakh crore

2015:

The RBI in­tro­duces a debt re­struc­tur­ing scheme to en­able banks to dis­place weak pro­mot­ers

2016:

Par­lia­ment en­acts the In­sol­vency and Bank­ruptcy Code, which lays down pro­cesses and tight dead­lines for in­sol­vency res­o­lu­tion and liq­ui­da­tion

June 2017:

The RBI in­structs banks to file in­sol­vency cases against 12 large non-per­form­ing ac­counts

Feb 2018:

The RBI dis­con­tin­ues all re­struc­tur­ing schemes; says a com­pany will be a de­faulter if it misses re­pay­ment sched­ule by even a day. Bad loans bal­loon to `10.25 lakh crore as of March 2018

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