January 14, 2021
×
Would have been useful just after AQR or earlier when stress was building up and banks were looking to delay bad debt recognition
Establishing a bad bank today would aggregate but not serve the purpose that has been observed in other markets, Kotak Securities Ltd (KSL) said in a report.
Bad bank is perhaps well served in the initial leg of the loan recognition cycle, it added.
“While we are unaware of its probability and design, creation of a bad bank would have been most fruitful three-four years back (perhaps just after the Asset Quality Review) or earlier when the stress was just building up and banks were looking to delay recognition for various reasons.
IL&FS Solar Power Limited (ISPL) has paid its entire debt amounting to nearly Rs 845 crore to its creditors - including financial and operational debt, thereby helping the IL&FS Group move ahead with the resolution process. This follows pre-payment by Embassy Energy Private Limited (EEPL) for the financial assistance provided by ISPL. The repayments by IL&FS Solar also cover tax and statutory dues, without any preference to any creditor or class of creditors, IL&FS group said in a statement. ISPL had undertaken construction and financing of a 100 MW solar power project in Bellary district, Karnataka, for Embassy Energy Private Limited (EEPL) that was commissioned in February 2018.
Findit Highlights Featured Members American Craftsman Renovations, Carolina Pool Consultants and Freedom Loan Resolution tennesseedaily.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tennesseedaily.com Daily Mail and Mail on Sunday newspapers.