Govt. eyes recovery of over ₹1.8 lakh cr. NPAs

‘IBC aiding bad loan recoveries’

October 28, 2018 10:29 pm | Updated 10:29 pm IST - New Delhi

Enthused by the impact of new insolvency and bankruptcy law, the government expects bad loan recoveries to exceed the ₹1.80 lakh crore-target for the current financial year, an official said.

Some big accounts are in the process of getting resolved while some more are lined up for resolution under the Insolvency and Bankruptcy Code (IBC), a senior Finance Ministry official said.

“Going by the success rate, we hope that the recovery would exceed our target of ₹1.80 lakh crore through the IBC and other means,” the official said, citing the ongoing resolution of Essar Steel and Bhushan Power and Steel Ltd.

Banks hope to write back more than ₹1 lakh crore from the resolution of 12 NPA cases alone, recommended for insolvency proceedings by the RBI in its first list. Banks recovered ₹36,551 crore in the first quarter of 2018-19. In 2017-18, banks recovered ₹74,562 crore.

‘Rules have changed’

Satisfied with the progress of cases under the IBC, Finance Minister Arun Jaitley had said “now people have become broadly aware that the rules of the game in India have changed. The banks won’t chase you any more, you will have to chase them.”

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.