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Lenders take stock of progress in NCLT cases

Focus on plugging gaps, improving coordination, keeping timelines

Abhijit Lele & PTI  |  Mumbai 

insolvency, NPAs, banks, mutual fund, debt, loan

Lenders will work out procedures to follow timelines and coordination in cases taken for resolution at the National Company Law Tribunal (NCLT).
 
Senior public sector bank executives called Monday’s meeting a routine exercise where top bankers reviewed the progress made in work (for cases filed at NCLT). will put in place necessary mechanism to ensure that the lenders do a good job.

 
“It was a stock-taking exercise. We want to smoothen the coordination among all the stakeholders,” said a banker.
 
It was the first such review exercise in seven weeks after the (RBI) set in motion an action plan on 12 big-ticket bad loan cases.
 
On June 13, the banking regulator had asked certain to refer 12 to the for possible liquidation process.
 
The RBI’s internal advisory panel had recommended for reference accounts with fund and non-fund based outstanding greater than Rs 5,000 crore, with 60 per cent or more classified as non-performing by as of March 31, 2016.
 
have created a list of jobs at hand and articulated ways to carry out activities with timelines.
 
These 12 accounts are Essar Steel, Bhushan Steel, Electrosteel Steels, Amtek Auto, Bhusan Power and Steel, Alok Industries, Monnet Ispat and Lanco Infra, Era Infra, Jaypee Infratech, ABG Shipyard and Jyoti Structures.
 
These accounts constitute about 25 per cent of the current gross non-performing assets in the banking system.
 
Out of these 12 accounts, nine have already been referred to the NCLT, while Lanco Infra, Jaypee Infratech and Era Infra are yet to be admitted.

First Published: Mon, August 07 2017. 23:42 IST
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