Mumbai : ‘RBI’ has prepared a list of 500 highest ‘defaulters’, to resolve the issue of ‘Non-Performing Asset’ (NPA). It has been observed that as per this list, 12 ‘defaulters’ owe banks around Rs 2 lakh crore and action will be taken against them as per ‘Insolvency and Bankruptcy Code’. Two days back, the Union Finance Minister and the bank officials had a meeting relating to the issue of ‘NPA’. Preparing the list only a few hours after this meeting indicates that the government is gearing up to take action against the defaulters.
The issue of ‘NPA’ has become the most serious issue for the Indian banks. The bad loans of the public sector banks have reached nearly Rs 7 lakh crore. Huge proportions of this are the corporate loans. Due to this issue of bad loans, many banks are on the verge of a financial collapse. Finance department has given instructions to the banks to take steps to reduce the ‘NPA’.
Last year the act of ‘Insolvency and Bankruptcy’ was passed in the Lok Sabha. As per this act, the company which has been unable to repay the loan would be considered defaulter and declared bankrupt. After this the National Company Law Tribunal (NCLT) would complete the hearings on these cases within 180 days and decide how to recover the money from these defaulters. Accordingly, the banks could sell off the properties of the defaulters and find a way out from the issue of ‘NPA’.
The Internal Advisory Committee (IAC) of RBI has prepared a list of 500 loan defaulters. Amongst these, 12 accounts have a loan overdue of around 2 Trillion Rupees or Rs 2 lakh crore. In other words, these 12 accounts have the 25 percent of the ‘ NPA ‘ of these banks. Although the RBI has not revealed the names of these 12 defaulters, yet action will be taken against them under the ‘Insolvency and Bankruptcy Code’.
After this, action would be taken on other accounts from this list. It is said that the proceedings on other big loan defaulters would be initiated within six months. Almost all the debtors in this list have caused a loss to the bank in excess of Rs 5,000 crore. Officials have informed that RBI will very soon instruct the banks lending loans to these ‘defaulters’, to start proceedings against them under the ‘Insolvency and Bankruptcy Code’