Banks to refer 23 large stressed accounts to NCLT for insolvency proceeding

Published On: 13, Dec 2017 | Source:

With the RBI's deadline ending on Wednesday to resolve the 28 large that the regulator had identified on its second list, are set to refer as many as 23 of them for insolvency proceedings.

In August, the Reserve had asked to either resolve the 28 more large by December 13 or refer them to the Tribunal (NCLT) by December 31.

These 28 accounts together account for 40 per cent of bad loans of around Rs 4 trillion.

"Except for Anrak Aluminium, Jayaswal Neco Industries, Soma Enterprises and Jaiprakash Associates, all other accounts are going to the (for resolution)," a senior banker told PTI.

Some of the large accounts which are likely to go to the include Asian Color Coated Ispat, Castex Technologies, Coastal Projects, East Coast Energy, IVRCL, Orchid Pharma, SEL Manufacturing, Metallic, Steel, Visa Steel, Essar Projects, Jai Balaji Industries, Monnet Power, Nagarjuna Refinery, Ruchi Soya Industries and Wind World India.

In the case of Anrak Aluminium, the lenders are looking for a one-time settlement while for Soma Enterprises, the banker said the account is closer to resolution.

For -- its EPC business arm -- the lenders are seeking the Reserve approval for a "deep restructuring", another banker said.

The lenders have also sought RBI permission to extend the December 13 deadline for Videocon Industries, where they have huge exposure, said another banker.

"If the RBI gives us some extension for Videocon Industries, then it is fine. Otherwise, it will also have to go to the NCLT," said the banker.

"For these accounts, there is hardly any traction for us to do it in another 10-15 days," said a senior official from a state-owned

The lenders have the restructuring option under S4A (Scheme for Sustainable Structuring of Stressed Assets), SDR (Strategic Debt Restructuring) or 5/25 schemes till today.

Many bankers said that though they asked for extension on today's deadline, they don't expect the RBI to oblige.

Once these accounts pass the resolution deadline, will have to refer them to the in the next 18 days, that is December 31.

will also have to make a provision of 50 per cent on these accounts by March 2018.

It can be noted that of the 12 largest accounts that the RBI had named on the June list, 11 of them are under the These 12 accounts were worth a quarter of over Rs 10 trillion dud loans in the system.