"After hearing both the sides and on perusal of records, this bench is of the view that the initiation of bankruptcy proceedings is the best option in the given scenario. The same is recorded as prayed for. In the circumstances, the proposal of the applicant for initiation of insolvency proceedings of IIDL and IIDMCC is taken on record," the NCLT said.
Private banks' enhanced capital bases during the pandemic have now further strengthened their ability to recognise losses up-front with less disruption in their efforts to accelerate market-share gains.
Ramakrishnan had retired from ICICI Bank as Senior General Manager at Strategic Project Group on May 30, 2020, and joined the South Indian Bank as an advisor on July 1, 2020.
Last year, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted the company for insolvency resolution. It had appointed Indian Overseas Bank's former managing director and CEO R Subramaniakumar as the company's administrator.
To ensure filing of return by these persons and to keep track on cash withdrawals by non-filers, and to curb black money, the Finance Act, 2020 with effect from July 1, 2020, further amended I-T Act, 1961, to lower the threshold of cash withdrawal to Rs 20 lakh for the applicability of TDS for non-filers.
In the period of less than 5 years, Central Depository Services Ltd (CDSL) has added 1.5 crore demat accounts.
"On hearing the Counsel for the applicant and upon going through the pleadings and the documents attached to the application, we are of the view that the sale of education assets has been done within the Resolution Framework and the same is approved and recorded," the NCLT's Mumbai bench said.
A bench headed by Justice Ashok Bhushan, which commenced final hearing on a batch of pleas raising the issue of interest on instalments deferred under the scheme during the moratorium period, was told that paying interest on interest is a "double whammy" for borrowers.
Bankers say those with 20-year loans, who have availed the moratorium, will see their home loans term extended by 24 months if the dues for the last six months are amortised. This would not leave them with any scope for further restructuring.
As per the latest RBI guidelines, a bank opening a dedicated current account of any company with Rs 50 crore or more in debt must have at least 10 per cent loan exposure in the concerned business entity.
An affidavit filed by the finance ministry comes across as a last ditch attempt to convince the court that borrowers will get a chance with concessions and loan rescheduling, and banks, no matter how big and bad, will fail to serve the interest of hapless depositors in the absence of interest income from loans -- that balance has to be preserved.
Industry experts said that while the surge in UPI-based micro-transactions could help India achieve its stated objective of transforming into a cashless economy, banks would be nervously monitoring the rising volumes of low-ticket fund transfers.