According to the media reports, the Supreme Court said the NCLAT cannot interfere with the commercial decisions taken by banks in Essar Steel case. The Supreme Court decision overrules NCLAT’s July 5 judgment that operational creditors should be treated on a par with financial creditors for distribution of funds from Arcelor Mittal’s bid in the Essar Steel insolvency case.
Further, the apex court relaxed timeline of 330 days prescribed in the Insolvency and Bankruptcy Code (IBC), the media reports added.
Reacting to this news, Corporation Bank, Central Bank of India, Syndicate Bank, Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank (PNB) and Oriental Bank of Commerce rallied on the banking index.
Central Bank, Bank of India, Syndicate Bank, Canara Bank and SBI surged in the range of 4-9%, followed by Indian Bank, PNB, OBC, Bank of Baroda and Union Bank were up 2-3% respectively.
Also, the Nifty Bank index gained over 246 points, RBL Bank, ICICI Bank, Kotak Mahindra Bank and Yes Bank were up in today’s session.
Meanwhile, the Nifty is trading higher by 51 points and the Sensex climbed 212 points at 40,498.