This reaction has come post the successful conclusion of Bhushan Steel’s case.
According to a senior Finance Ministry official, the remaining 11 NPA cases that are in the pipeline will easily help in bringing more than Rs 1 lakh crore to the table. This will also help in reduction of NPAs with the resolution carried under the Insolvency and Bankruptcy Code (IBC).
Last year in June, Internal Advisory Committee (IAC) of the Reserve Bank of India (RBI) identified 12 accounts. Each of these accounts were carrying more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks.
The National Company Law Tribunal (NCLT), Kolkata Bench has already approved Vedanta Resources’s resolution plan for acquisition of Electrosteel Steels last month.
Further, NCLT has also directed the lenders of Bhushan Power & Steel to mull over the bid submitted by UK-based Liberty House for the debt-ridden company.
Bhushan Power and Steel owes to nearly Rs 48,000 crore NPAs to banks. Public lender Punjab National Bank referred it to the NCLT in June last year.