LS Clears Bank­ing Reg­u­la­tion Bill, 2017

It’ll re­place or­di­nance pro­mul­gated to em­power RBI to deal with stressed as­sets

The Economic Times - - Economy: Macro, Micro & More - Our Bu­reau

New Delhi: The Lok Sabha has passed the Bank­ing Reg­u­la­tion (Amend­ment) Bill, 2017, in­tro­duced last month to re­place the ex­ist­ing or­di­nance pro­mul­gated in May this year to em­power the Re­serve Bank of In­dia to deal with stressed as­sets. Re­ply­ing to a de­bate on the bill on Thurs­day, fi­nance min­is­ter Arun Jait­ley said the process of res­o­lu­tion of bad loans will start shortly.

The fi­nance min­is­ter said the Re­serve Bank of In­dia had al­ready iden­ti­fied top 12 loan de­fault­ers and more cases will be ta- ken up for res­o­lu­tion. The or­di­nance had pro­vided for more pow­ers to the RBI to deal with stressed as­sets. “No one can claim the right of equal­ity in not pay­ing banks back. RBI has taken up some dif­fi­cult cases... I am sure they will take up more,” he added.

Af­ter pro­mul­ga­tion of Bank­ing Reg­u­la­tion (Amend­ment) Or­di­nance, 2017, RBI iden­ti­fied 12 com­pa­nies that ac­count for 25 % of to­tal NPAs of banks for im­me­di­ate re­fer­ral for res­o­lu­tion un­der the Bank­ruptcy Law. “We will shortly see the process of res­o­lu­tion com­ing. Any form of res­o­lu­tion is pos­si­ble. We need to save the com­pa­nies, the jobs and we need liq­uid com­pa­nies to pay the banks,” said Jait­ley. Bank­ruptcy pro­ceed­ings have been ini­ti­ated against com­pa­nies such as Elec­tros­teel Steel, Lanco In­frat­ech, Alok In­dus­tries, Jy­oti Struc­tures Ltd, Es­sar Steel, Bhushan Steel and Bhushan Power & Steel.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.