The Reserve Bank of India has sent a second list of 26 loan defaulters to commercial banks and asked them to commence the debt resolution before initiating bankruptcy proceedings, reported The Mint.
The Reserve Bank of India has sent a second list of 26 loan defaulters to commercial banks and asked them to commence the debt resolution before initiating bankruptcy proceedings, reported The Mint.
In its letter, the Central Bank stated that these accounts should first be resolved through any of RBI's schemes before December 13. However, if not done as mentioned then cases should be filed against the firms under the Insolvency and Bankruptcy Code at the National Company Law Tribunal before December 31.
NCLT is the arbitration authority for cases filed under the IBC.
Quoting bankers who spoke on condition of anonymity, the report said that the defaulters’ list includes firms in the power, telecommunication, steel, and infrastructure sectors.
According to the report, the names of Videocon Industries Ltd and Jaiprakash Associates Ltd (JAL) are in list of 26 defaulters. It said that the two firms had been accounted for over Rs 1 trillion of debt.
“We have no comment to offer as JAL’s resolution plan was approved on 22 June by JLF (joint lenders’ forum)," said Manoj Gaur, the chairman of Jaypee Group.
The central bank and the Ministry of Finance had earlier said that 50 top stressed accounts would be taken up for resolution with a plan for revival.
On a quarter-on-quarter basis, the increase in NPAs has been the highest in Q1 FY18, witnessing an increase of about 16.6% over the preceding quarter to reach Rs 829,338 crore as of June 2017.
According to rating firm CARE Ratings, State of India (SBI) accounted for the largest share of about 22.7% of the total gross bad loans in the banking sector. SBI, Punjab National Bank, Bank of India, IDBI Bank and Bank of Baroda together accounted for 47.4%, amounting to Rs 393,154 crore in the total NPAs as of June-end 2017.
Among the top 20 banks, according to GNPAs in absolute terms, 18 are public sector lenders while the other two are private sector banks — ICICI Bank and Axis Bank. These two private sector banks have a combined share of 7.9% in total NPAs.
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