Delays in resolution process of the 12 stressed assets that were referred to the National Company Law Tribunal (NCLT) have cost the banks an additional ₹4,000 crore, ratings agency ICRA said on Monday.
A list of 12 stressed assets was prepared by the RBI, which the banks were asked to refer to NCLT for resolution. “The lenders for the initial 12 companies in RBI’s list of June 2017 are estimated to have lost out on about ₹4,000 crore in additional income due to the delays in the resolution process beyond the 270-day period,” ICRA said.
Pending corporate insolvency resolution processes increased to 816 as on September 30, 2018 from 723 as on June 30, 2018.
According to Abhishek Dafria, vice president & Co-Head, Corporate Ratings, ICRA, pending cases increased despite the quarter having the highest closure of cases seen so far at 123.
Of the 816 on-going cases, about 30% of them have already exceeded the 270-day timeline which was supposed to be the maximum timeframe allowed for the resolution process to be completed as per the IBC, he said while adding another 20% of the cases have crossed the 180-day timeline.
