Insolvency delay costs banks Rs 4,000 cr
Banks have lost an additional income of Rs 4,000 crore due to delay in resolution of the initial 12 large insolvency cases referred by the RBI last June. Of the 12 large insolvency cases, only four have been resolved so far.
The other cases remain unresolved even after over 450 days of their being admitted by the NCLT. Of the 816 ongoing corporate insolvency resolution process, about 30 per cent have exceeded the 270-day timeline, which was supposed to be the maximum time allowed for the resolution process under Insolvency and Bankruptcy Code. Another 20 per cent cases have crossed the 180day timeline.