RBIs' 12 baddies include Essar, Bhushan Steel, Amtek Auto: Report

India Infoline News Service | Mumbai | June 16, 2017 09:40 IST

RBI has sent names of these accounts to the bankers so that they must get resolved immediately through the Insolvency and Bankruptcy Code, 2016 (IBC).

In the latest development regarding the resolution of non-performing assets, the Reserve Bank of India (RBI) identified 12 bad accounts for immediate insolvency.
 
According to a leading business daily, the 12 bad accounts include Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, JP Infra, Lanco Infratech, Monnet Ispat, Jyoti Structures, ABG Shipyard, Amtek Auto and Era Infra, reported leading national business daily. Bhushan Steel is one of the top borrowers in the list with a gross borrowing for FY16 at Rs 44,885 crore.
 
RBI has sent names of these accounts to the bankers so that they must get resolved immediately through the Insolvency and Bankruptcy Code, 2016 (IBC).
 
The Internal Advisory Committee (IAC) noted that under the recommended criterion, 12 accounts totalling about 25% of the current gross NPAs of the banking system are qualified for immediate reference under IBC.
 
Insolvency and Bankruptcy Code is a single law that deals with insolvency and bankruptcy. IBC outlines separate insolvency resolution processes for individuals, companies and partnership firms. The code establishes the Insolvency and Bankruptcy Board of India to oversee the insolvency proceedings in the country and regulate the entities registered under it.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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