Biz Updates: IDBI-Central and Indian Overseas Bank’s profit increased due to NPA decline; Paytm’s loss reduced to Rs 208.5 crore

New Delhi|The net profit of IDBI, Central and Indian Overseas Bank has increased by 33 per cent in the third quarter of the current financial year due to reduction in bad bad loans (NPAs). Net profit rose 31 per cent to 1,908 crore in the third quarter due to lower provisioning and better interest income, IDBI Bank reported on Monday. Interest income increased from Rs 6,541 crore to Rs 7,816 crore. Gross NPAs declined from 4.69 per cent to 3.57 per cent.

Central Bank of India’s profit rose 33 per cent to Rs 959 crore. Total income also increased from 9,139 crore to 9,739 crore. Gross NPAs decreased from 4.50 per cent to 3.86 per cent. Indian Overseas Bank’s net profit rose 21 per cent to Rs 874 crore. The bank’s gross bad bad debt dropped from 3.90 percent to 2.55 percent.

Paytm’s loss reduced to Rs 208.5 crore

One97 Communications, a company owned by the Paytm brand, reduced its consolidated loss to Rs 208.5 crore in the third quarter of the current financial year. This loss has been caused by reduction in expenditure on payment processing fees and employee costs. Zomato’s consolidated net profit declined by 57.2 per cent to Rs 59 crore. However, integrated operating income increased to 5,405 crore.

Agreement with the borrowers should be reached only after all measures to recover the dues

RBI has directed asset reconstruction companies (ARCs) to reach agreements with borrowers only after trying all possible methods of recovery of dues. Also said, every ARC should formulate a policy approved by the Board of Directors for settlement of dues of borrowers.

The revised directive issued by the central bank said, inter alia, aspects like cut-off date for lump sum settlement eligibility, losses sanctioned for different categories of risk while arriving at the settlement amount and ways to arrive at the actual value of the guaranteed product. should be included. In addition, the settlement amount must be paid in lump sum. If the agreement does not provide for payment of the entire amount agreed upon in one instalment, the offer must be in line with the acceptable business plan (where applicable), the borrower’s estimated income and cash flow.