Lenders to miss March-end deadline to resolve key insolvency cases

Once an account is settled with the highest bidder paying their bid amount, then it frees part of bank's locked fund in an account which could be used for lending purposes

Indian lenders are set to miss the March-end deadline to resolve several key bankruptcy accounts, including that of Reliance Capital (RCap) and Videocon Industries. This is resulting in blockage of funds worth over Rs 1 trillion.

The banks were targeting to conclude the entire process by March-end so that they could resolve these accounts.

Other unresolved accounts include Future Retail, Lanco Amarkantak, Reliance Broadcast, and Srei Infrastructure Finance.

“Even though the higher bidder in some cases has been identified, it would be difficult to close the case in March due to litigation,” said a banker.

Once an account is settled