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.
- Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
- Now Save Rs.3150 on your Demat Account ...Click here
- Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
- Get the most detailed result analysis on the web - Real Fast!
- Actionable & Award-Winning Research on 500 Listed Indian Companies.