As many as 12 accounts each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs
are being under the Insolvency
and Bankruptcy Code process.
The total outstanding of these accounts taken together is Rs 1.75 lakh crore.
are in the process of taking other large non-performing assets accounts to the National Company Law Tribunal (NCLT) under the IBC.
It has been brought to the notice of the Finance
Ministry that some of the willful defaulters
are making a bid to buy assets of those cases which have been referred under IBC, a senior official said.
The resolution is crucial to the entire banking sector and therefore banks
have been advised to be vigilant so that willful defaulters
do not get benefits of the process, the official said, adding that banks
have to be very conscious of this fact that such defaulters should not find a way to get into the system again.
has defined time-frame for the resolution and there is a 14-day time period for the admission or rejection of a case by the National Company Law Tribunal.
After a case is accepted by NCLT, the creditor would get 30 days to hire insolvency
practitioners and then the entire process to be completed in 180 days which will look at various possibilities including the revival of projects or liquidation.
has been equipped with powers to specify one or more authorities to advise banks
for dealing with the problem of NPAs
which, as per the Ordinance, "have reached unacceptably high levels and urgent measures are required for their resolution".
Non-performing assets of public sector banks
have increased to Rs 7.33 lakh crore as of June 2017, from Rs 2.78 lakh crore in March 2015.