In­sol­vency de­lay costs banks Rs 4,000 cr

India Business Journal - - FINANCE -

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.

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