The ministry of corporate affairs will meet lending institutions today to discuss cases pertaining to distressed assets under the Insolvency and Bankruptcy Code or IBC. There shall be discussion on 52 matters of large defaulters who made it in the RBI's list 1 and 2 for debt resolution process under IBC.
Nonetheless so far, only 3 profiles have been resolved so far that includes Bhushan Steel Ltd, Monnet Ispat Ltd and Electrosteel Steel Ltd. And the resolution process for other 9 companies is still underway even though the deadline of over 540 days has already passed since they have included in the NCLT for resolution.
On a more recent basis, SBI also put on sale its exposure to Essar Steel worth Rs. 15,431 crore. And in a recent award function, the bank's chairman said that the loan position has been sold due to avoid Rs. 17 crore on a single account on a per day basis.
There is time value of money and that explains SBI's decision to put on sale Essar Steel's exposure," he added. "While we are not fed up with the IBC, its success lies in the fact there is quick resolution of cases."