RBI has not disclosed the names of these 12 largest loan defaulters but said they account for 25% of country’s bad loans
IndiaTomorrow.net,
Mumbai, June 14: The Reserve Bank of India (RBI) has identified 12 largest debtors in the country – each of them with loans of above Rs 5000 crores – and asked banks to take legal course to recover those loans.
In May this year, RBI had announced to constitute a committee comprising mostly its independent Board Members to advise it in regard to the cases that may be considered for reference for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC).
The committee, called Internal Advisory Committee (IAC), held its first meeting on June 12, 2017.
“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,” said RBI in a post on its webiste Tuesday night.
“The IAC also arrived at an objective, non-discretionary criterion for referring accounts for resolution under IBC. In particular, the IAC recommended for IBC reference all accounts with fund and non-fund based outstanding amount greater than ₹ 5000 crore, with 60% or more classified as non-performing by banks as of March 31, 2016.”
“The IAC noted that under the recommended criterion, 12 accounts totaling about 25 per cent of the current gross NPAs of the banking system would qualify for immediate reference under IBC,” said RBI.
As regards the other non-performing accounts which do not qualify under the above criteria, the IAC recommended that banks should finalise a resolution plan within six months, it further said.
Based on the recommendations of the IAC, RBI will issue directions to banks to file for insolvency proceedings under the IBC in respect of the identified accounts. Such cases will be accorded priority by the National Company Law Tribunal (NCLT).
