SBI chairman says amendments required in section 29A of insolvency code

SBI chairman Rajnish Kumar added that recoveries in the 12 NCLT accounts referred by the RBI in its first list will be 50%, while for the second list of NCLT companies, the recoveries will be lesser

State Bank of India Chairman Rajnish Kumar (pictured) said amendments in the Section 29A of the Insolvency and Bankruptcy Code (IBC) are necessary as the earlier amendment imposed a blanket ban on a defaulter’s relatives, who wanted to bid for a company.

“There are many cases where two brothers have split their businesses 20 years ago but as one brother is now a defaulter, the other brother cannot bid for the assets under the IBC,” Kumar said during the Business Standard banking summit on Thursday evening.

In the case of L N Mittal, chairman of ArcelorMittal, which is a bidder