The State Bank of India (SBI) has set up a new unit to settle insolvency cases, according to a CNBC TV-18 news report.
The report states that this unit will officially handle all the cases that fall under SBI. Work has already begun on the resolution of 39 cases that have been identified by the Reserve Bank of India (RBI).
In July, the RBI released a list of loan defaulters, out of which all 12 companies fell under the credit responsibility of SBI. In August, another list was released, of which 27 companies were given credit by SBI.
The report also stated that earlier there were many groups — large and mid-corporate account groups — that were looking at such cases, but the bank found it difficult to put an operating mechanism in place for timely submission of these cases to the National Companies Law Tribunal (NCLT), the legal body that looks into corporate law.
This is the second such board to have come into existence since the Stressed Asset Management Group (SAM G).
The board hopes to resolve 50 percent of such cases and submit them to the NCLT for review.Deputy Managing Director Padmaja Chunduru, who was recently in charge of SBI’s United States operations, will be in charge of the board. She will report to B Shriram, Managing Director for corporate banking.