The Reserve Bank of India has issued directions to banks to file for insolvency proceedings in respect of the 12 identified accounts.
Bankers are meeting from Monday to decide on the possible course of action against six of the 12 defaulters for immediate referral to National Company Law Tribunal (NCLT).
The Reserve Bank, based on the recommendations of its internal advisory committee (IAC), has issued directions to banks to file for insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) in respect of the identified accounts.
Six defaulters have accounts with SBI and the rest six with Punjab National Bank (PNB), ICICI Bank, Union Bank, IDBI Bank and Corporation Bank.
The six largest bad loan accounts are Bhushan Steel (Rs 44,478 crore), Essar Steel (Rs 37,284 crore), Bhusan Power and Steel (Rs 37,248 crore), Alok Industries (Rs 22,075 crore), Amtek Auto (Rs 14,074 crore) and Monnet Ispat (Rs 12,115 crore), a PTI report quoting a banker said.
According to IAC, these 12 accounts constitute a total of about 25 per cent of the current gross NPAs of the banking system.
The other six large accounts are Lanco Infra (Rs 44,364.6 crore), Electrosteel Steels (Rs 10,273.6 crore), Era Infra (Rs 10,065.4 crore), Jaypee Infratech (Rs 9,635 crore), ABG Shipyard (Rs 6,953 crore) and Jyoti Structures (Rs 5,165 crore).
“Beginning Monday, banks are meeting to discuss six of the 12 accounts named by the RBI before the referring accounts to the National Company Law Tribunal by the end of this month,” a banker told PTI.
In order to resolve the bad loan crisis, the internal advisory committee (IAC) of Reserve Bank of India (RBI), last week, identified 12 defaulters for resolution under the Insolvency and Bankruptcy Code (IBC).
Source: Media reports