The Reserve Bank of India has sent bankers the list of 12 stressed accounts that they must resolve through the Insolvency and Bankruptcy Code (IBC), sources privy to the developments told CNBC-TV18. The 12 accounts are Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, JP Infra, Lanco Infratech, Monnet Ispat, Jyoti Structures, ABG Shipyard, Amtek Auto and Era Infra, they said.
Lenders have an exposure of more than Rs 5,000 crore to these accounts and more than 60 percent of which have been identified as non-performing assets. The RBI on Tuesday had said it had identified 12 stressed accounts that would need to be resolved via the IBC.
The total exposure to the companies stands at about Rs 2 lakh crore, in comparision with the gross NPA tally of Rs 7 lakh crore in the banking sector. Bhushan Steel with a gross debt of over Rs 44,000 crore is most likely the single largest exposure that lenders have on their books.
Next in the pecking order are Bhushan Steel and Bhushan Power with about Rs 35,000 crore debt each. Alok Industries has a debt of around Rs 24,000 crore, while Electrosteel Steels about Rs 10,000 crore and Monnet Ispat’s loan book is pegged at Rs 12,000 crore.
Lenders to these companies have to set up a committee to line up a resolution plan once the cases are referred to IBC. If that cannot be done in a period of 180 days — this can be extended to 270 days — the borrowing entity will go into liquidation. The RBI has recently hinted that it will soon come out with changes in provisioning needs for cases referred to IBC.Watch videos for expert analysis...