Lenders meet to chart action plan for 12 large NPA accounts PMO takes stock of progress
Lenders on Monday began meeting to initiate proceedings against 12 stressed accounts identified by the Reserve Bank to be referred under the Insolvency and Bankruptcy Code (IBC), sources said.
The accounts identified by the RBI include Amtek Auto (~14,074 crore), Bhushan Steel (~44,478 crore), Essar Steel (~37,284 crore) Bhusan Power and Steel (~37,248 crore), Alok Industries (~22,075 crore), Monnet Ispat (~12,115 crore) and Lanco Infra (~44,364.6 crore). The list also named Electrosteel Steels (~10,273.6 crore), Era Infra (~10,065.4 crore), Jypaee Infratech (~9,635 crore), ABG Shipyard (~6,953 crore) and Jyoti Structures (~5,165 crore) as defaulting borrowers. The Prime Minister’s Office (PMO) on Monday held a stock taking meeting with senior officials of the ministries of finance and corporate affairs to review the progress in resolution of NPAs in the light of recent action taken by the RBI on stressed assets. Prime Minister’s additional secretary P K Mishra had a review meeting on resolution of nonperforming assets (NPAs) or bad loans which have reached unacceptably high level, sources said.
According to sources in finance ministry various banks held meeting today to chart out future course of action regarding some of the accounts identified by RBI.
“In today's (Monday) meeting, banks met to finalise their action plan for some of the accounts before referring to the National Company Law Tribunal (NCLT),” said a banker. Bankers met to discuss accounts such as Amtek Auto, Bhushan Steel and Essar Steel, among others, said another banker.
Last week, RBI’s internal advisory committee (IAC) after it's meeting had recommended 12 accounts totalling about 25 per cent of the gross NPAs of the banking system for immediate reference under IBC.
While ABG Shipyard, Amtek Auto, Alok Industries, Bhushan Steel, Bhushan Power and Steel, Electrosteel Steels, Jaypee Infratech, Jyoti Structures and Monnet Ispat and Energy have not responded to e-mails sent to them, Era Infra and Lanco Infra could not be contacted.