Rehabilitation Recovery Part 2
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary objective of rehabilitation of a sick industrial unit?
The primary objective is to revive the unit's viability so it can repay its debts and resume normal operations, thereby preserving employment and economic value.
What is 'earning potential' assessed during rehabilitation of a sick unit?
Future capacity of the unit to generate sufficient profits
Under RBI guidelines, what is the maximum period allowed for a rehabilitation package to become viable?
The rehabilitation package should make the unit viable within a period not exceeding 10 years from the date of implementation of the package.
What is 'cash loss' in the context of a sick industrial unit?
Operating loss excluding depreciation and interest charges
What is meant by 'reliefs and concessions' in the context of rehabilitation of sick units?
Reliefs and concessions refer to measures like interest rate reductions, moratorium on repayment, waiver of penal interest, and funding of interest arrears to ease the debt burden of the sick unit.
What is meant by 'haircut' taken by banks in an OTS settlement?
Portion of outstanding dues waived by the bank permanently
What is a 'Nursing Programme' in bank credit rehabilitation?
A Nursing Programme is a structured plan drawn up by lenders to provide financial support and operational guidance to a sick unit to help it recover over a defined period.
Under SARFAESI Act, what is the minimum NPA amount for taking action?
Outstanding principal and interest must exceed rupees one lakh
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