Lenders take stock of progress in NCLT cases

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Lenders will work out procedures to follow timelines and coordination in cases taken for resolution at the National Company Law Tribunal (NCLT).

Senior public sector bank executives called Monday’s meeting a routine exercise where top bankers reviewed the progress made in work (for cases filed at NCLT). Banks will put in place necessary mechanism to ensure that the lenders do a good job.

It was a stock-taking exercise. We want to smoothen the coordination among all the stakeholders,” said a banker.

It was the first such review exercise in seven weeks after the Reserve Bank of India (RBI) set in motion an action plan on 12 big-ticket bad loan cases.

On June 13, the banking regulator had asked certain banks to refer 12 non-performing accounts to the NCLT for possible liquidation process.

The RBI’s internal advisory panel had recommended for reference accounts with fund and non-fund based outstanding greater than Rs 5,000 crore, with 60 per cent or more classified as non-performing by banks as of March 31, 2016.

Banks have created a list of jobs at hand and articulated ways to carry out activities with timelines.

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