Large defaulters to be focus of bankers meet in Mumbai

In a report the Reserve Bank of India named the largest loan defaulters – 12 of them who will face bankruptcy proceedings

In a report the Reserve Bank of India named the largest loan defaulters – 12 of them who will face bankruptcy proceedings

According to a leading business daily, the 12 bad accounts include Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, JP Infra, Lanco Infratech, Monnet Ispat, Jyoti Structures, ABG Shipyard, Amtek Auto and Era Infra.

The respective bankers will meet the companies on RBI's list from Monday onwards, as per media reports.

The remaining six companies up for bankruptcy action are: Lanco Infra (Rs.44,365 crores); Electrosteel Steels (Rs.10,274 crores); Era Infra (Rs.10,065 crores); Jaypee Infratech (Rs.9,635 crores); ABG Shipyard (Rs.6,953 crores) and Jyoti Structures (Rs.5,165 crores).

The internal advisory committee of the RBI had sent the list of 12 accounts to bankers for immediate reference under the Insolvency and Bankruptcy Code.

Reserve Bank of India last week identified 12 accounts for insolvency proceedings with each of them having over Rs 5,000 crore of outstanding loans, accounting for 25 per cent of total NPAs of banks.

Since these are large accounts and involve multiple banks, the lenders will try to take a common view on all administrative requirements before referring these accounts to the NCLT.

Essar Steel spokesperson had said, "We are not aware of any such development".

Prime Minister's additional secretary P K Mishra had a review meeting on resolution of non-performing assets (NPAs) or bad loans which have reached at unacceptably high level, sources said.

The meeting is also likely to be attended by RBI deputy governor Viral Acharya, sources said.

The banking sector is saddled with NPAs of over Rs 8 lakh crore, of which Rs 6 lakh crore is on the books of public sector banks (PSBs). Last month, the government had cleared an ordinance to amend the Banking Regulation Act, giving the RBI more powers to direct banks to resolve bad loans.

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