Bank of America Extends $685B In Credit In 2010

Bank of America Corp. said Monday it provided more than $685 billion in credit to individuals, small businesses, nonprofit organizations and large companies last year, down 9.6 percent from a year earlier.

Spokeswoman Colleen Haggerty said the decline from $758 billion in 2009 reflected lower demand for loans in the first half of 2010. She said there were sequential increases in lending in each of the four quarters in 2010.

The bank extended nearly $188 billion in credit in the final quarter of 2010, a 4.5 percent increase over the same period a year ago. That included $85 billion in first mortgages, $15 billion to nonprofit, government and anchor institutions, and $75 million to community development financial institutions that provide loans for low- and moderate-income families and small businesses.

Bank of America also completed 76,000 mortgage modifications in the fourth quarter. The bank so far has completed 775,000 loan modifications since January 2008.

Shares of the bank added 44 cents, or 3 percent, to $14.72 in midday trading chiropractic marketing

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Banks Issue Notices to Recover Loans Granted to Real Estate Companies

Public sector banks including State Bank of India, Bank of Baroda, Bank of India, Indian Overseas Bank have served notices to dozens of real estate companies to recover around Rs 20,000 crore of their exposure by March. The banks are now making efforts to recover their real estate loans which were restructured in the aftermath of global financial crisis in 2008.

However, some of the real estate companies which are currently witnessing low volume of business have already asked for further restructuring of these loans, a proposal which banks are generally not willing to endorse. M Narendra, CMD, IOB confirmed that the bank has sent notices to some of the real estate firms.

Nagesh Pydah, CMD, Oriental Bank of Commerce and RK Bakshi, executive director, Bank of Baroda, said efforts were being made to recover the loans to realty companies. A senior SBI official requesting anonymity said that the bank has taken action under the Sarfaesi Act which empowers the banks to seize and sell assets in case of defaults to recover their dues.

No confirmation of the banks’ move was available from the real estate companies. “We have sent notices to five-six real estate companies and asked them to repay our entire outstanding amount within 40-50 days. A majority of such accounts are related to IT parks and located at places like Bangalore, Hyderabad and Mumbai,” said Narendra.