BY
PRATIK BHAKTA
&
SAIKAT DAS
, ET BUREAU | UPDATED:
MUMBAI: The Reserve Bank of India (RBI) Tuesday sought to address potentially about a fourth of the Rs 10 lakh-crore non-performing assets (NPAs) on the books of local lenders, mandating that a dozen such accounts be taken to the bankruptcy courts. Although the RBI didn't name any defaulter, bankers say borrowers such as Bhushan Steel, Essar Steel, Lanco, and Alok Textiles may be the first set of companies facing proceedings under stringent recovery laws.
“The IAC, in the meeting, agreed to focus on large stressed accounts at this stage and accordingly took up for consideration the accounts which were classified partly or wholly as non-performing from amongst the top 500 exposures in the banking system,” the RBI said in a statement issued late Tuesday.
On Monday, the Internal Advisory Committee of the RBI recommended referring to the Insolvency and Bankruptcy Court all accounts with total outstanding loans greater than Rs 5,000 crore with at least three-fifths (60%) classified as non-performing by banks as on March 31, 2016.
“The IAC (Internal Advisory Committee) noted that under the recommended criterion, 12 accounts totaling about 25% of the current gross NPAs of the banking system would qualify for immediate reference under IBC (Insolvency and Bankruptcy Court),” it said.
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