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SBI to move NCLT over bad debts

Energy industry provides big-ticket cases under Bankruptcy Code

Veena Mani  |  New Delhi 

SBI

State Bank of India (SBI) is planning to take the route to recover non-performing assets (NPAs).

According to sources, SBI is planning to take and coal companies to the National Company Law Tribunal (NCLT).

The bank did not comment on Business Standard’s query on the issue.

SBI’s gross NPAs of Rs 1,12,343 crore on March 31, 2017, constitute one-sixth of the total bad debts of public sector

Six months after the notification of the and Code, a number of big-ticket filings have been made in the In May, filings worth Rs 10,000 crore were initiated, one of them being against the Kolkata-based company Ramsarup Industries, which has a principal debt of Rs 2,000 crore.

Other companies facing proceeding include Uttam Galva Steel, NRE Coke, Marmagoa and Facor NRE Coke, listed on the National Stock Exchange, has debts of Rs 3,880 crore.

Biodiesel manufacturer Oleo Chemical has debts of almost Rs 5,000 crore and has filed for in the Ahmedabad bench of the

filings in the sector amount to over Rs 20,000 crore, some initiated by creditors and others by the companies themselves. Executives of a company that has filed for said the government’s earlier policies were to blame for the poor state of power companies.

The Supreme Court in August 2014 cancelled all coal block allocations over the past two decades. Around Rs 2.85 lakh crore of investment in 218 coal blocks went down the drain with this order and close to 28,000 Mw of power capacity became stranded. 

“The bad debts of some of the core industries, such as metals and power, constitute a large chunk of bad debts overall. are taking possession of these assets and are seeking a change in ownership,” said Debashish Mishra, partner at Deloitte.

Most of these cases are transfers from the Board of Industrial and Financial Restructuring (BIFR). The Code was enacted to restructure sick companies and help sort out their mess.

A recently promulgated ordinance empowers the Reserve Bank of India to ask to initiate proceedings and recover bad loans. Minister Arun Jaitley yesterday said the RBI was finalising a list of borrowers for resolution under the and law.

With inputs from Shreya Jai

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