Public sector banks (PSBs) have recovered close to Rs 1.2 lakh crore from stressed assets during the financial year 2018-19, primarily with the help of the resolution under the Insolvency and Bankruptcy Code (IBC), according to a PTI report citing an official source.
The report further said that the PSBs could not achieve the resolution target of Rs 1.80 lakh crore due to non-resolution of some big accounts referred under NCLT (National Company Law Tribunal). These accounts are expected to be resolved in the current fiscal year.
Banks recovered close to Rs 55,000 crore from the NCLT resolution, it said and, Rs 60,713 crore was recovered from bad loans in the first half of FY19.
The official further said that the total recovery for the year has doubled compared to Rs 74,562 crore in 2017-18.
An estimated amount of Rs 50,000 crore is still pending to be resolved from two large accounts of Essar Steel and Bhushan Power & Steel Ltd. The PTI report said that the recovery from these accounts are expected in the next few months.
The official further said that the consolidation among public sector banks and higher recoveries by state-owned lenders will be on the government's agenda in the current financial year.