RBI finalising list of bad loans for bankruptcy process: Jaitley
12 Jun 2017
The Reserve Bank of India (RBI) is in the process of finalising a list of debtors who are stuck with their loans and where resolution of the issue can only be through the Insolvency and Bankruptcy Code (IBC) process, finance minister Arun Jaitley said.
Addressing the media after his annual review of the performance of public sector banks (PSBs) during 2016-17, finance minister Arun Jaitley on Monday expressed confidence over achieving meaningful progress on the issue of resolution of stressed assets, as ''precipitative action'' gets taken in pursuance of the recent ordinance on banks' bad loans.
''These cases (81) are already before the National Company Law Tribunal under the IBC process'', Jaitley added.
RBI deputy governor S S Mundra, meanwhile, said the central bank has constituted an internal advisory committee to help it ''identify the accounts'' that needed to be referred for the IBC process.
Active work is going on under this panel and soon action points will emerge, he said.
''This committee will help frame the guidelines basis which the accounts will be identified,'' the Hindu BusinessLine quoted Mundra as saying.
The government had last month come up with an ordinance, popularly referred as bad loan ordinance, to lead PSU banks out of the bad loan problem.
The ordinance also enhanced the size and scope of the oversight committee and identification of such accounts that can be quickly taken up under the IBC process.
India's banking system is laden with bad loans of over Rs8,00,000 crore and resolution of this is important for nursing state-run banks back to health.