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Banks face higher provisions on resolution delays to big-ticket NCLT cases

These cases were in advanced stages of resolution, and their settlement was expected by the end of the March quarter of 2018-19

NCLT, IBC
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Illustration: Binay Sinha

Namrata AcharyaAbhijit Lele Kolkata/Mumbai
Four big-ticket National Company Law Tribunal (NCLT) cases — Essar Steel, Bhushan Power and Steel, Jaypee Infratech, and Alok Industries — will see their resolution getting pushed to the next financial year (2019-20), increasing the provisioning burden on lenders. It will also postpone the benefit of reversal of money set aside as provisions.
 
These cases were in advanced stages of resolution, and their settlement was expected by the end of the March quarter of 2018-19. This would have brought relief to lenders in the form of release of provisions made, which could have been used for some other stressed

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First Published: Mar 30 2019 | 11:46 PM IST

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