12 large NPA cases listed for insolvency yet to come before IBBI: Sahoo
IBBI chairman M.S. Sahoo says the 12 cases involving large NPAs, identified for resolution under the Insolvency and Bankruptcy Code, are yet to come before the board
New Delhi: Insolvency and Bankruptcy Board of India (IBBI) chairman M.S. Sahoo on Monday said the 12 cases involving large non-performing assets (NPAs) or bad loans, identified for resolution under the Insolvency and Bankruptcy Code, are yet to come before the board.
The Reserve Bank of India’s internal advisory committee had last week sent the list of 12 accounts to bankers for immediate reference under the Code.
The 12 large NPA cases are yet to come to IBBI for resolution and the banks have to first file the cases with the NCLT, Sahoo told reporters in New Delhi.
Sahoo chairs the IBBI, which is implementing the Code. Under the Code, banks have to approach the National Company Law Tribunal (NCLT) for resolution. Once the cases are accepted, the resolution would take place in 180 days and the time limit could be extended provided there is a valid reason.
While noting that 100 NPA cases are being dealt with under the Code, Sahoo said the NCLT is equipped with capacity to handle more cases and dispose them off within the time frame. The IBBI chairman also said that he does not expect delay due to possible counter civil suits in the 12 large NPA cases.
The 12 accounts are led by SBI (six of them), PNB, ICICI Bank, Union Bank, IDBI Bank and Corporation Bank, according to bankers. These accounts have an exposure of more than Rs5,000 crore each, with 60% or more classified as bad loans by banks as of March 2016.
The first set of six troubled accounts are Bhushan Steel (Rs44,478 crore), Essar Steel (Rs37,284 crore), Bhusan Power and Steel (Rs37,248 crore), Alok Industries (Rs22,075 crore), Amtek Auto (Rs14,074 crore) and Monnet Ispat (Rs 12,115 crore), a banker said.
According to RBI, these 12 accounts owe Rs2.5 trillion (Rs 2.5 lakh crore) to the system, which constitute around 25% of gross bad loans.
The other accounts named for bankruptcy action, according to bankers, include Lanco Infra (Rs44,364.6 cr), Electrosteel Steels (Rs10,273.6 crore), Era Infra (Rs10,065.4 crore), Jypaee Infratech (Rs9,635 crore), ABG Shipyard (Rs6,953 crore) and Jyoti Structures (Rs5,165 crore).
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:19 Jun 2017, 06:34 PM IST
- Top Gainers
- Top Losers
- 52 Week High