FinMin asks banks to step up efforts to reduce delays in IBC cases

At a review meeting, the finance ministry directed public sector banks to minimise adjournments and speed up CIRP filings, aiming to accelerate NCLT admission and resolution timelines

The finance ministry has asked public sector banks to step up efforts to minimise adjournments and delays in filing Corporate Insolvency Resolution Process (CIRP) applications to expedite resolution of cases under the Insolvency and Bankruptcy Code (IBC), during a review meeting chaired by M Nagaraju, Secretary, Department of Financial Services.

 

The meeting reviewed the progress of top insolvency cases pending for admission and resolution at the National Company Law Tribunal. Senior officials from DFS, top management of public sector banks and representatives from the Insolvency and Bankruptcy Board of India attended the meeting.

 

During the review, banks were advised to adopt a collaborative approach in resolving pending cases to maximise asset value, improve recoveries and ensure adherence to time-bound objectives under the Insolvency and Bankruptcy Code framework.

 

The press statement said that twenty high-value accounts have been resolved during the year through admission, assignment or disposal at NCLT, reflecting coordinated efforts among stakeholders.

 

A detailed review of twenty major accounts pending for admission and ten cases pending for resolution was also undertaken to accelerate the process. Issues causing delays in pending insolvency cases were discussed during the deliberations.

 

Chief executives of public sector banks were advised to closely monitor the top cases pending before the tribunal and work towards faster resolution.

 

The meeting concluded with an emphasis on expediting pending insolvency cases and addressing procedural inefficiencies to improve recovery outcomes.