Clock is ticking for Rs 3.8 trn stressed assets; 70 firms may land in NCLT

Power sector players have approached the courts against the RBI, with a plea to give extra time for working on resolution package

The fate of about 70 big-ticket stressed accounts with loans of over Rs 3.8 trillion is uncertain as the deadline of August 27 for firming up resolution plans for them approaches. Failing to stitch a plan might leave lenders with no choice but to take these companies to the bankruptcy court.

      

The Reserve Bank of India’s (RBI's) new rules for resolving stressed assets (issued on February 12) require banks to finalise a plan within 180 days of default. For large defaulting accounts (Rs 20 billion and above), the rules came into effect from March 1. If lenders are unable