Fast-track NPA resolution: 22 PSBs, 19 private, 32 foreign banks sign pact to resolve stressed assets

Mumbai: Nearly two dozen lenders led mostly by state-run banks on Monday signed the inter-creditor agreement (ICA) framework to speed up the resolution of stressed assets which are under Rs 500 crore bracket. The faremwork is part of Project Sashakt a report on bad loans drafted by a committee headed by Sunil Mehta non-executive chairman of PNB. The Project Sashakt report was submitted earlier this month. The other two members of the three member panel included State Bank of India (SBI) chief Rajnish Kumar and Bank of Baroda chief PS Jayakumar.The inter-creditor agreement will serve as a platform for banks and financial institutions which are fighting a toxic mount of bad loans that is sniffing at 12 per cent of the system now to come together and take concerted efforts towards resolving dud loans under Rs 500 crore. It will also enable lenders to move expeditiously and protects the interest of all the lenders. Today we ve got the inter-creditor agreement executed. Most banks have already got their board approvals and other are in the process of getting the same. The objective is to use this framework for faster resolution of stressed assets Mr Mehta told reporters on Monday.He said 18 public sector banks led by SBI three private sector banks and Exim Bank signed the framework. Other lenders will also sign the agreement after getting their board approvals he added. By end-July this agreement will get operational and we are hopeful that by and large by this will be signed by all banks Mr Mehta said adding that so far no foreign banks has signed the agreement as they have to get board approvals. In the case of foreign banks they have to go to their head offices for approvals. It is a tedious process for them to fully understand the regulations on this matter. I am quite confident that they will be able to get approvals he said.Mr Mehta said the objective is to resolve stressed assets fast and will primarily focus on NPAs in the Rs 50 crore-500 crore bracket as well as in the Rs 500-2 000 crore ticket size which will be dealt separately though.As of March 2018 there were close to Rs 3.10 lakh crore worth of bad loans in the Rs 50 crore-500 crore category and Rs 2.10 lakh crore under the ticket size of Rs 50 crore.The framework will deal separately with stressed assets of over Rs 2 000 crore Mr Mehta added.He said the agreement in letter and spirit is in conformity with the February 12 2018 RBI circular but the ICA framework will be a master agreement applicable on all stressed assets going forward.Under the framework the lead lender shall be authorised to formulate the resolution plan which shall be presented to the other lenders for their approval.The decision making shall be by way of approval of majority lenders that is the lenders with 66 per cent share in the aggregate exposure. Once a resolution plan is approved by the majority it shall be binding on all the lenders that are a party to the inter-creditor agreement.The framework also has a provision for dissenting lenders which gives them an option to buy the asset or if they want they can sell it at a 15 per cent discount. From here on responsibility that goes to the lead banks to be able to find a resolution plan that is going to be supported and is going to be the most appropriate resolution which is required for the stressed assets Mr Mehta said.Talking about the proposed AMC/alternative investment fund Mr Mehta said discussions are on with different funds which have shown interest in participating in the fund. There has been conversations with some institutions which are willing to take the lead on that he said without giving any further information. The domestic equity markets started the week on Monday on a positive note. The S&P BSE Sensex opened at 36 501.05 while the NSE Nifty50 was at 11 019.85. In early trade the Sensex traded at 36 600.47 up 104.10 points or 0.29 per cent. The broader Nifty was at 11 046.15 with a gain of 35.95 points or 0.33 per cent. Thirty five out of 50 Nifty stocks traded in the green. Among the top gainers was Asian Paints Ltd which gained over 3 per cent on both the indices after the GST Council decided to lower the tax rate to 18 per cent from 28 per cent on paints.ITC and Adani Ports also gained between 2-3 per cent on both the benchmarks.Eight out of 12 PSU banking stocks declined on the NSE. Nifty IT index traded with losses and was down at 0.13 per cent.Wipro was the top loser on both the indices as it lost over 2 per cent despite posting a net profit of Rs. 2 121 crore from Rs. 2 077 crore a year earlier.HDFC Bank was down about over 1 per cent on both the indices despite posting 18.2 per cent rise in first quarter profit.In the global markets Asian shares declined with Japanese stocks pressured by strength in the yen after the dollar broadly dropped on US President Donald Trump s criticism of the Federal Reserve. The MSCI Asia Pacific Index rose 0.2 per cent Japan s Topix index fell 0.3 per cent and South Korea s Kospi index fell 0.3 per cent. On Friday the Dow Jones Industrial Average slipped 0.03 per cent or 6.38 points to close at 25 058.12 the S&P 500 shed 0.09 per cent to end at 2 801.83 and the Nasdaq Composite inched lower by 0.07 per cent to 7 820.20. NEW DELHI: Iran displaced Saudi Arabia as India s second-largest oil supplier in the first quarter of the current fiscal regaining a position it lost seven years ago as state-run refiners scrambled to take advantage of Tehran s attractive financial terms before the US sanctions covering the oil industry come into force in November. Oil minister Dharmendra Pradhan on Monday told Parliament that state-run refiners imported more oil from Iran in the April-June period than Saudi Arabia which has now been relegated to third position. Iraq remains India s top oil supplier. The development could deepen the dilemma for New Delhi as it faces the prospect of having to reduce or completely stop oil imports from Iran if it fails to get a waiver. But industry sources said there s enough time to wind down Iranian oil flow and tap other sources if the need arises by the sanctions deadline. Finding replacement for Iranian oil isn t a problem. Iraq Saudi Arabia and Kuwait can fill the gap. There will be some incremental increase in costs as they may not offer the sweeteners on freight and insurance that Iran offers. Besides the high degree of technical capability gives Indian refineries flexibility to process a variety of oil precluding dependence on particular types of crude. Iran was India s second largest oil supplier after Saudi Arabia till 2010-11 The diverse basket of India s oil supplies also helps. The real challenge for India is balancing its age-old relations with Tehran and the financial/strategic stake in the Chabahar port project the outpost for New Delhi s Af-Pak policy and the imperative of avoiding confrontation with the US. Iran was India s second-largest oil supplier after Saudi Arabia till 2010-11. But it dropped to seventh position after India gradually reduced import of Iranian oil to meet conditions of waiver granted by the US administration under President Barack Obama when it had imposed sanctions to curb Tehran s nuclear programme. Imports were gradually ramped up after the sanctions were lifted following the July 2015 deal on Joint Comprehensive Plan of Ac-tion with Iran. State refiners however cut imports in 2017-18 by a quarter in retaliation of Tehran delaying the contract for Farzad-B gas field discovered by a consortium of Indian companies. But once again India s oil trade with Iran may find itself back to square one. Unlike the sanctions by Obama s presidency Trump s Washington so far appears totally unforgiving. The big two private refiners Reliance Industries and Nayara led by Russia s Rosneft have stopped Iranian imports. And the oil ministry has told the state refiners to look up alternative supplies in case India does not get a waiver. New Delhi: HighlightsIndia imported 5.67 million tonnes Iranian oil in first 3 fiscal months India has been under pressure by the US to cut oil supply from Iran India had asked refiners to be ready for a cut in Iranian oil last monthIran was the second-biggest oil supplier to Indian state refiners between April and June India s oil minister Dharmendra Pradhan said today replacing Saudi Arabia as companies took advantage of steeper discounts offered by Tehran.India Iran s top oil client after China shipped in 5.67 million tonnes or about 457 000 barrels per day (bpd) of oil from the country in the first three months of this fiscal year Mr Pradhan told lawmakers in a written reply.He did not provide comparable numbers from the year-ago period. Data compiled by Reuters shows that India imported about 3.46 million tonnes or about 279 000 bpd from Iran between April and June last year.State refiners accounting for about 60 per cent of India s 5 million bpd refining capacity had curbed imports from Iran last year in protest against Tehran s move to grant development rights for the giant Farzad B gas field to other parties.The refiners - Indian Oil Corp Chennai Petroleum Corp Bharat Petroleum and its unit Bharat Oman Refineries Ltd Hindustan Petroleum and Mangalore Refinery and Petrochemicals - shipped in 9.8 million tonnes of Iranian oil in 2017/18 about a quarter less than a year ago Mr Pradhan s reply stated.For this fiscal year the refiners had decided to almost double imports from Iran which offered almost free shipping and extended credit period on oil sales.Iraq continued to be the top oil supplier to India in the April-June period. New Delhi shipped in 7.27 million tonnes of oil from Iraq while shipments from Saudi Arabia totalled 5.22 million tonnes making it the third largest supplier Mr Pradhan s statement showed.India and other major buyers of Iranian oil are under pressure to cut imports from the country after Washington in May withdrew from a 2005 nuclear deal with Tehran and decided to reimpose sanctions on the OPEC member.Reuters reported last month that India had asked refiners to prepare for drastic reductions or even zero Iranian oil imports.The first set of sanctions will take effect on Aug. 6 and the rest notably in the petroleum sector following a 180-day wind-down period ending on November 4. Indian refineries import crude oil from diverse sources including Iran depending on technical and commercial considerations Mr Pradhan said without elaborating if the refiners would cut imports from Tehran.India s overall oil imports from Iran in June declined by about 16 per cent from May as refiners started weaning their plants off crude from Iran to avoid US sanctions. Thomson Reuters 2018 NEW DELHI: Iran was the second-biggest oil supplier to Indian state refiners between April and June oil minister Dharmendra Pradhan said on Monday. Iran replaced Saudi Arabia as companies took advantage of steeper discounts offered by Tehran. India Iran s top oil client after China shipped in 5.67 million tonnes or about 457 000 barrels per day (bpd) of oil from the country in the first three months of this fiscal year Pradhan told lawmakers in a written reply. He did not provide comparable numbers from the year-ago period. Data compiled by Reuters shows that India imported about 3.46 million tonnes or about 279 000 bpd from Iran between April and June last year. State refiners accounting for about 60 per cent of India s 5 million bpd refining capacity had curbed imports from Iran last year in protest against Tehran s move to grant development rights for the giant Farzad B gas field to other parties. The refiners - Indian Oil Corp Chennai Petroleum Corp Bharat Petroleum and its unit Bharat Oman Refineries Ltd Hindustan Petroleum and Mangalore Refinery and Petrochemicals - shipped in 9.8 million tonnes of Iranian oil in 2017/18 about a quarter less than a year ago Pradhan s reply showed. For this fiscal year the refiners had decided to almost double imports from Iran which offered almost free shipping and extended credit period on oil sales. Iraq continued to be the top oil supplier to India in the April-June period. India shipped in 7.27 million tonnes of oil from Iraq while shipments from Saudi Arabia totalled 5.22 million tonnes making it the third largest supplier Pradhan s statement showed. India and other major buyers of Iranian oil are under pressure to cut imports from the country after Washington in May withdrew from a 2005 nuclear deal with Tehran and decided to reimpose sanctions on the OPEC member. Reuters reported last month that India had asked refiners to prepare for drastic reductions or even zero Iranian oil imports. The first set of sanctions will take effect on August 6 and the rest notably in the petroleum sector following a 180-day wind-down period ending on November 4. Indian refineries import crude oil from diverse sources including Iran depending on technical and commercial considerations Pradhan said without elaborating if the refiners would cut imports from Tehran. India s overall oil imports from Iran in June declined by about 16 per cent from May as refiners started weaning their plants off crude from Iran to avoid US sanctions. The Maruti Suzuki Ciaz facelift has been in the offing for a while now and the automaker has been testing the model for a while too. While we ve brought you multiple spy shots of the updated sedan in the past Maruti Suzuki has finally teased the updated Ciaz in a new video online. The teaser however is a blink and miss and part of a video that shows the complete Nexa range of models. That said we do get a good look at some of the vital changes that the 2018 Ciaz facelift will sport when it arrives sometime in the following months. Maruti Suzuki Ciaz 8.8 Lakh On Road Price (New Delhi) FIND OUT MORE (The 2019 Maruti Suzuki Ciaz facelift will get reworked headlamps) The Maruti Suzuki Ciaz went on sale in late 2014 and has managed to hold the fort in the compact sedan segment for a good four years now. However the competition has improved by a good margin which means the Ciaz won t be having it easy now. In the facelift avatar then the sedan will come with cosmetic upgrades and a host of new features as well. The video teases the new front grille on the Ciaz facelift that gets a chrome induced mesh instead of the horizontal slats. The grille appears more angular now and is complemented by the new sharper-looking headlamps. Noticeable changes include the new LED daytime running lights with projector lens while updates to the bumper are also likely. Advertisement At NEXA we always believe in creating new that inspires. #NEXA #CreateInspire pic.twitter.com/kWoODsiV2X Nexa Experience (@NexaExperience) July 22 2018 The rear has not been teased on the Maruti Suzuki Ciaz facelift and is likely to get new LED taillights and a revised bumper. Inside do not expect major changes to the layout of the dashboard but features like cruise control are likely to be added to the list. Also inclusive will be new upholstery materials and upgrades to the SmartPlay infotainment system. Also Read: Maruti Suzuki Ciaz Facelift Spied Testing In addition to the aesthetic upgrades the 2018 Maruti Suzuki Ciaz facelift is likely to get a major change under the bonnet. The automaker could introduce the updated 1.5-litre K-Series petrol engine on the Ciaz facelift replacing the current 1.4-litre K-Series petrol motor. The 1.5-litre petrol engine made its debut with the new generation Ertiga in Indonesia earlier this year and churns out about 104 bhp and 130 Nm of peak torque. The motor will come paired with a 5-speed manual transmission and is likely to get a mild hybrid system as well for a higher fuel efficiency. Diesel power will continue to come from the same 1.3-litre DDiS motor tuned for 89 bhp and 200 Nm of peak torque. (Aesthetic changes will be largely to the Ciaz facelift s exterior while interior upgrades will be subtle) 0 CommentsDealerships are yet to open bookings for the new Ciaz facelift but order books are likely to open by early August as per some Nexa outlets across the country. Meanwhile certain dealers are offering discounts on existing stocks for both petrol and diesel versions. So those looking to pick up the current model would want to check it out. The updated Ciaz will be competing against the likes of the Honda City Hyundai Verna Volkswagen Vento and the Skoda Rapid in the segment. For the latest auto news and reviews follow CarAndBike on Twitter Facebook and subscribe to our YouTube channel. .story-content span .story-content p .story-content div color:#000!important;font-family: open sans Arial!important;font-size:15px!important ALSO READ GST rates cut for aam aadmi: Peak rate basked snipped; returns made easier GST Council s rush job angers some FMs of Opposition-ruled states Here s everything that will get cheaper as new GST rates come into effect GST Council meet: Relief for exporters tax exemption extended by 6 months span.p-content div id = div-gpt line-height:0;font-size:0 Shares of paint consumer durables and footwear companies rallied by up to 10 per cent on the BSE on Monday after the GST Council reduced tax rates from 28 per cent to 18 per cent on a range of daily use products and appliances. Among items on which GST was reduced on Saturday include footwear small televisions water heater electric ironing machines refrigerators lithium-ion batteries hair dryers vacuum cleaners food appliances and ethanol. The development triggered a 5 per cent to 9 per cent rally in Bata India Relaxo Footwears Mirza International Khadim India Superhouse and Liberty Shoes from the footwear sector; Asian Paints and Shalimar Paints from the paint segment; and Havells India IFB Industries and Butterfly Gandhimathi Appliances from the consumer durables space. Asian Paints Berger Paints Havells India Bata India and Relaxo Footwears hit their respective 52-week highs on the BSE. Meanwhile ITC (up 3 per cent at Rs 282) and VST Industries (up 20 per cent at Rs 2 993) from the cigarette sector rallied up to 20 per cent over the past few months as the GST Council kept the tax rates unchanged. ALSO READ: Industry hails GST rate cuts decision to allow quarterly filing of returns The recent move to cut rates analysts say should help boost sales particularly in the consumer durable segment over the next few months. The latest changes in the tax rate structure impact positively a few companies (consumer appliances/durables space) under our active coverage such as Whirlpool of India IFB Industries Bajaj Electricals V-Guard Industries Havells India and Crompton Consumer. Footwear companies like Bata India are also positively impacted. The hospitality sector will also be positively impacted say analysts at Nirmal Bang Securities. For their part companies plan to pass on the benefit of the rate cut to consumers going ahead to prop up sales especially in the festive season. The rate cut will benefit consumer durable companies like us to pass on the benefit to the consumers for the upcoming festive season. The 10 per cent cut in the television segment is of particular interest to us as we have a good acceptability in the 22 inch and 24 inch TV size segment. The move will make the televisions more affordable for consumers in Tier 3 and 4 cities says Nidhi Markanday director of Intex Technologies. ALSO READ: GST rate cut impact: Synthetic textiles to be 5-7% cheaper from August Among individual stocks Bata India hit a new high of Rs 878 up 4 per cent after India s largest footwear retailer reported 37 per cent growth in net profit in the June 2018 quarter over the corresponding period last year. Though analysts at Motilal Oswal peg the revenue hit for the government at Rs 60 billion-Rs 70 billion going ahead they too believe the slashing of GST rate across these products/segments will benefit consumers light electrical hotels and the textile industry. Asian Paints Berger Kansai Nerolac Akzo Nobel P&G BATA Relaxo Whirlpool Bajaj Electrical Havells V Guard Crompton Consumer Siemens Coromandel Indian Hotels EIH Lemon tree ITC Shree Renuka Sugars Balrampur Chini Bajaj Hindusthan and Arvind among others will benefit from the move says Gautam Duggad head of research Motilal Oswal Securities. .story-content span .story-content p .story-content div color:#000!important;font-family: open sans Arial!important;font-size:15px!important ALSO READ Arysta buy to make UPL the world s fifth largest crop protection company UPL: Q3 correction may be a good entry point as prospects remain firm UPL s 4.2 bn purchase of ArystaLifeScience to deepen its global footprint Today s picks: From UPL to Sun Pharma hot stocks to watch today Tata Power Vedanta UPL hit 52-week lows span.p-content div id = div-gpt line-height:0;font-size:0 UPL has surged 15% to Rs 631 on the BSE on heavy volumes in noon deals after the company announced the acquisition of Arysta LifeScience the agrochemical business of US-based Platform Chemicals for a consideration of 4.2 billion. UPL on Friday said that its wholly-owned subsidiary UPL Corporation has signed a definitive agreement with Platform Specialty Products Corporation to acquire Arysta LifeScience Inc. and its subsidiaries for a cash consideration of about 4.2 billion. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and TPG have partnered with UPL Corp to support the proposed acquisition. The deal is subject to customary closing conditions and regulatory approvals. This acquisition will create a New UPL and fulfills UPL s objective of creating an integrated patent and post-patent agricultural solutions business with a global footprint. New UPL will represent a compelling value proposition for growers distributors suppliers and innovation partners in a consolidating market UPL said in a press release. While the acquisition of Arysta would drive significant synergy benefits (product portfolio expansion strengthened presence in Europe and cost synergies on backward integration and efficiencies) it would also result in a highly leveraged balance sheet for UPL Motilal Oswal Securities said in a note. While we revise up our FY20 revenue and EBITDA estimate by 62% and 59% (building in financials of Arysta) respectively we cut our FY20 PAT estimate by 8% (due to higher interest cost on increased debt). We thus cut our valuation multiple from 17x to 13x FY20E EPS and arrive at a target price of Rs 664 ( 21% upside) it added. Thus far in calendar year 2018 (CY18) UPL had underperformed the market by falling 28% as compared to 7.2% rise in the S&P BSE Sensex till Friday. At 12:09 pm; the stock was trading 13% higher at Rs 623 on the BSE as compared to 0.24% rise in the benchmark index. A combined 12.7 million equity shares changed hands on the counter on the BSE and NSE so far.