<p class="title">Dozens of large stressed assets, mostly in infrastructure and power sectors, may face bankruptcy proceedings as the Reserve Bank of India’s 180 days deadline to find a resolution plan comes to an end on Monday.</p>.<p class="title">These assets refer to the ones whose aggregate exposure to banks in each of the cases is over Rs 2,000 crore.</p>.<p class="title">The RBI, in a circular on February 12 had asked banks to finalise a resolution plan for finalise resolution plan for such loan accounts within a 180-day. The 180-day period comes to an end on Monday.</p>.<p class="title">The central bank had said that in the absence of a resolution, banks needed to refer these accounts to the National Company Law Tribunal (NCLT). Thereafter they will be tried under Insolvency and Bankruptcy Code (IBC).</p>.<p class="title">RBI’s move is a part of its efforts to contain non-performing assets of lenders.</p>.<p class="title">Although banks are scrambling to resolve most of these cases outside NCLT as referring to bankruptcy proceeding involves a large hair cut by banks, there are a number of cases which have still not resolved.</p>.<p class="title">An official said there are an estimated four to five dozen cases that could be referred to NCLT if the RBI does not give any relaxation in its February 12 circular.</p>.<p class="title">Earlier this month, RBI had reviewed around 200 such cases of large loan accounts to to assess level of stress and provisioning done against them by respective banks. Some of the accounts which came under RBI scanner included Videocon and Jindal Steel and Power, according to sources.</p>.<p class="title">The Centre has sought extension of deadline for resoulution plan by another 180 days. </p>.<p class="title">According to a recent Icra report, 70 large accounts, mainly from power, EPC and telecom with a total exposure of Rs Rs 3,80,000 crore, would require resolution by September 1 as per the RBI’s February 12 circular.</p>.<p class="title">The RBI has so far emphasised on a strict timeline for the resolution plan.</p>
<p class="title">Dozens of large stressed assets, mostly in infrastructure and power sectors, may face bankruptcy proceedings as the Reserve Bank of India’s 180 days deadline to find a resolution plan comes to an end on Monday.</p>.<p class="title">These assets refer to the ones whose aggregate exposure to banks in each of the cases is over Rs 2,000 crore.</p>.<p class="title">The RBI, in a circular on February 12 had asked banks to finalise a resolution plan for finalise resolution plan for such loan accounts within a 180-day. The 180-day period comes to an end on Monday.</p>.<p class="title">The central bank had said that in the absence of a resolution, banks needed to refer these accounts to the National Company Law Tribunal (NCLT). Thereafter they will be tried under Insolvency and Bankruptcy Code (IBC).</p>.<p class="title">RBI’s move is a part of its efforts to contain non-performing assets of lenders.</p>.<p class="title">Although banks are scrambling to resolve most of these cases outside NCLT as referring to bankruptcy proceeding involves a large hair cut by banks, there are a number of cases which have still not resolved.</p>.<p class="title">An official said there are an estimated four to five dozen cases that could be referred to NCLT if the RBI does not give any relaxation in its February 12 circular.</p>.<p class="title">Earlier this month, RBI had reviewed around 200 such cases of large loan accounts to to assess level of stress and provisioning done against them by respective banks. Some of the accounts which came under RBI scanner included Videocon and Jindal Steel and Power, according to sources.</p>.<p class="title">The Centre has sought extension of deadline for resoulution plan by another 180 days. </p>.<p class="title">According to a recent Icra report, 70 large accounts, mainly from power, EPC and telecom with a total exposure of Rs Rs 3,80,000 crore, would require resolution by September 1 as per the RBI’s February 12 circular.</p>.<p class="title">The RBI has so far emphasised on a strict timeline for the resolution plan.</p>