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NCLT route cannot be used effectively in all NPA cases, says SBI MD

One size fits all approach may not work in all cases, SBI MD said

Press Trust of India  |  New Delhi 

NCLT route cannot be used effectively in all NPA cases, says SBI MD

State Bank of India (SBI) Managing Director on Friday said should use the best available mechanism to recover bad loans and the (National Company Law Tribunal) route cannot be used effectively in all (NPA) cases.

Indicating that one size fits all approach may not work in all cases, he said that basically, the is one of the resolution mechanisms.

"A lot of resolution mechanisms already are there -- the RBI scheme, an oversight committee," Gupta told reporters on the sidelines of a conference organised by the PFRDA here. "The have to use what is the best mechanism in each particular case. The cannot be the solution for all cases."

The that find it tough to recover loans from borrowers can refer such cases to the as part of insolvency proceedings.

A number of banks, including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda and IDBI Bank, have initiated proceedings against defaulters by moving the to recover their dues.

The banking sector is saddled with NPAs of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector (PSBs).

The Reserve Bank of India (RBI) has identified 12 large accounts constituting 25 per cent or about Rs 2 lakh crore of the total pie.

Essar Steel, Bhushan Steel, Bhushan Steel and Power, Electrosteel Steel, Lanco Infratech, Alok Industries, Jyoti Structures and Jaypee Infratech are among the big names that are facing cases.

First Published: Fri, October 13 2017. 16:52 IST
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