New Delhi, (PTI) Country's largest lender State Bank of India (SBI) expects financial bidding process for resolution of 12 big stressed accounts to be over by the end of this month, said the bank's top official.
SBI is the lead banker in 6 out of 12 large NPAs with total outstanding loan of Rs 1.75 lakh crore.
"Financial bids of Electrosteel and Monnet Ispat have already come. We hope to receive bids for remaining cases during this month itself," SBI Chairman Rajnish Kumar told PTI.
Other cases which are pending before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) are Essar Steel, Bhushan Steel, Bhushan Power and Steel, Lanco Infra, Alok Industries, Amtek Auto, Era Infra, Jaypee Infratech, ABG Shipyard and Jyoti Structures.
RBI's internal advisory committee (IAC) in June identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks.
Non-performing Assets(NPAs)of public sector banks have increased to Rs 7.33 lakh crore as of June 2017, from Rs 2.78 lakh crore in March 2015.
Besides, RBI also came out with 28 large stressed accounts in the second list. In August, RBI had asked banks to either resolve these stressed accounts or refer them to NCLT by December 31.
As part of the second list, bankers decided to take all cases but Anrak Aluminium, Jayaswal Neco Industries, Soma Enterprises and Jaiprakash Associates for resolution.
The Supreme Court today said it would decide at a later stage the application of RBI seeking its nod to file insolvency proceedings before NCLT against the promoter company Jaiprakash Associate Limited (JAL).
The apex court directed realtor JAL to give details of its ongoing housing projects in the entire country while reiterating its direction that its directors shall not alienate their personal properties.
A bench headed by Chief Justice Dipak Misra also directed amicus curie Pawan Shree Agrawal to set up a portal to take note of the grievances of the home buyers of JAL.
IBC has defined a time-frame for the resolution and there is a 14-day time period for admission or rejection of a case by NCLT.
After a case is accepted by NCLT, the creditor gets 30 days to hire insolvency practitioners and then the entire process is to be completed in 180 days which takes into account various possibilities including revival of projects or liquidation.
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