For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Bank Nifty Dives 5% After Change In Insolvency Proceedings Criteria

|

Banking stocks plunged in trade, after the Finance Minister announced that the threshold to initiate insolvency proceedings were raised to Rs 1 crore from Rs 1 lakh earlier.

Bank Nifty Dives 5% After Change In Insolvency Proceedings Criteria
 

In a bid to give some relief to companies, which are likely to default on loans due to the Covid-19 stress, Finance Minister Nirmala Sitharaman on Sunday said no fresh insolvency will be initiated for one year under the Insolvency and Bankruptcy Code. Also, coronavirus-related debt will be excluded from definition of default, she said.

"Minimum threshold to initiative insolvency proceeding has been raised to Rs 1 crore from Rs 1 lakh to benefit MSMEs," the Finance Minister stated.The announcements are likely to have a direct impact on banks, which are already reeling under the prospect of bad debts.

Shares in ICICI Bank fell a huge 5 per cent, while State Bank of India dropped dropped 4 per cent, Axis Bank fell 5 per cent and HDFC Bank was down more than 4 per cent.

The Bank Nifty was down more than 5 per cent in trade.

Read more about: bank nifty
Story first published: Monday, May 18, 2020, 10:05 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more