The Internal Advisory Committee (IAC) noted that under the recommended criterion, 12 accounts totaling about 25% of the current gross NPAs of the banking system would qualify for immediate reference under IBC.
In the latest development regarding a resolution of non-performing assets, the Reserve Bank of India (RBI) has identified 12 bad accounts for immediate resolution under the Insolvency and Bankruptcy Code (IBC). RBI did not reveal the names of bad accounts. The Internal Advisory Committee (IAC) noted that under the recommended criterion, 12 accounts totaling about 25% of the current gross NPAs of the banking system would qualify for immediate reference under IBC.
Leading national research agencies have listed out some of the big bad NPAs that may be referred for insolvency by the RBI. These names may include Bhushan Steel, Alok Industries, Electrosteel Steels, IVRCL, Era Infra Engineering, Sterling Biotech and Moser Baer India. Bhushan Steel is the top borrower in the list with a gross borrowing for FY16 at Rs 44,885 crore.
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.
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