You are here: Home » News-ANI » Business
Business Standard

Large defaulters to be focus of bankers meet in Mumbai

ANI  |  Mumbai [India] 

The next course of action to be taken against six of the 12 bad loan defaulters will be in all probability be decided by leading bankers at a meeting here today.

Bankers are expected to refer these loan defaulting institutions and persons to the Tribunal (NCLT) after the Reserve of (RBI) for possible bankruptcy proceedings.

The six troubled accounts are said to be worth over Rs. 1.6 lakh crore.

These companies are (Rs.44, 478 crores); Bhusan Power and Steel (Rs.37,248 crores); Essar Steel (Rs.37,284 crores); (Rs.22,075 crores); ( Rs.14,074 crores) and (Rs.12,115 crores).

The remaining six companies up for bankruptcy action are: Lanco Infra (Rs.44,365 crores); Electrosteel Steels (Rs.10,274 crores); Era Infra (Rs.10,065 crores); Jaypee Infratech (Rs.9,635 crores); (Rs.6,953 crores) and Structures (Rs.5,165 crores).

The internal advisory committee of the RBI had sent the list of 12 accounts to bankers for immediate reference under the Insolvency and Bankruptcy Code.

Total non-performing assets (NPAs) of the banking system stand at over eight trillion rupees of which six trillion rupees are with public sector banks.

Once a case is referred to the NCLT, there is a time line of 180 days to decide on a resolution plan. An additional 90 days can also be given. If a plan is not decided, then the company will go into liquidation.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 19 2017. 10:57 IST