• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Oct. 4 Banks should not sell their Non-Performing Assets (NPAs) at a price lower than the net present value arrived in a manner mentioned by the Reserve Bank of India, said a notification from the apex bank.

“It has come to notice that in some cases NPAs have been sold for much less than the value of available securities and no justification has been given,” said the notification.

The central bank has asked banks to work out the net present value of the estimated cash flows associated with the realisable value of the available securities net of the cost of realisation, while selling their NPAs.

In case of payment of compromise settlements where the amount could be in instalments, the net present value of the settlement amount should be calculated and should generally not be less than the net present value of the realisable value of securities, the notification added.

More Stories on : Non-Performing Assets | RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
PNB to expand base via financial inclusion

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line