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IDBI Bank mulls insolvency proceedings against defaulter

PSB IDBI Bank's total NPLs are worth Rs 20,949 crore

Veena Mani  |  New Delhi 

IDBI Bank mulls insolvency proceedings against defaulter

is said to be planning to approach National Company Law Tribunal (NCLT) to recover bad loans worth Rs 100 crore from a company. Under Insolvency and Bankruptcy Code, a bank can file a case in to recover

An official in the know said, “The is planning to file for insolvency proceedings against a company to recover Rs 100 crore.” When contacted, IDBI declined to comment, citing silence period before announcement of results. 

Till March-end, of 30 cases admitted in NCLT, seven were by However, none was from a public sector bank (PSB). 

IDBI Bank’s total are worth Rs 20,949 crore. Under the RBI’s Prompt Corrective Action regime to fix NPLs, would also have to raise capital level and restrict dividend payout. 

However, this is not the first time a is planning to take the to had planned to take 250 defaulters to

Insolvency professionals say this is just the beginning. Now many more will resort to filing for insolvency proceedings against defaulters to recover dues.