Out of these 12 accounts, nine have already been referred to the NCLT, while Lanco Infra, Jaypee Infratech and Era Infra are yet to be admitted.
Leading bankers reviewed the progress on the 12 large stressed accounts named by the Reserve Bank resolution for action under the Insolvency and Bankruptcy Code (IBC).
The Internal Advisory Committee (IAC) of the Central bank had on June 13 directed the banks to refer 12 NPAs to the National Company Law Tribunal (NCLT) for possible liquidation process.
What is Non-Performing Asset?
A nonperforming asset (NPA) refers to a classification for loans on the books of a bank/financial institutions that are in default or are in arrears on scheduled payments of principal or interest. In most cases, debt is classified as non-performing in India when interest payments have not been made for 90 days.
These 12 accounts were -Essar Steel, Bhushan Steel, Electrosteel Steels, Amtek Auto, Bhusan Power and Steel, Alok Industries, Monnet Ispat and Lanco Infra, Era Infra, Jaypee Infratech, ABG Shipyard and Jyoti Structures. Together, they account for a quarter of the total Rs 8 trillion of NPAs.
"It was a stock-taking exercise. We want to smoothen the coordination among all the stakeholders," said a banker.
Out of these 12 accounts, nine have already been referred to the NCLT, while Lanco Infra, Jaypee Infratech and Era Infra are yet to be admitted.The IAC has referred all accounts whose fund and non-fund based loans are greater than Rs 5,000 crore, with 60 per cent or more classified as non-performing assets by banks as of March 2016, to the NCLT.