NEW DELHI: The finance ministry on Friday asked heads of public sector banks to monitor and review the top 20 Insolvency and Bankruptcy Code cases as part of their bad assets management. During a meeting with managing directors and CEOs of public sector banks, financial services secretary Vivek Joshi asked them to review the top 20 cases monthly for their resolution.
Besides, he also asked them to monitor cases long pending for admission and resolution under the Insolvency and Bankruptcy Code. The meeting also reviewed the working of the National Asset Reconstruction Company (NARCL). The finance minister will also review the functioning of banks on various aspects.
NARCL, a government entity, was incorporated in 2021 with a majority stake held by PSBs and the balance by private banks with Canara Bank being the sponsor bank.
It is registered with RBI as an asset reconstruction company. The Cabinet in 2021 cleared a proposal to provide a government guarantee worth Rs 30,600 crore to security receipts issued by NARCL.
According to the provision, NARCL would pay up to 15% of the agreed value for the bad loans in cash and the remaining 85% would be government-guaranteed security receipts.
Besides, he also asked them to monitor cases long pending for admission and resolution under the Insolvency and Bankruptcy Code. The meeting also reviewed the working of the National Asset Reconstruction Company (NARCL). The finance minister will also review the functioning of banks on various aspects.
NARCL, a government entity, was incorporated in 2021 with a majority stake held by PSBs and the balance by private banks with Canara Bank being the sponsor bank.
It is registered with RBI as an asset reconstruction company. The Cabinet in 2021 cleared a proposal to provide a government guarantee worth Rs 30,600 crore to security receipts issued by NARCL.
According to the provision, NARCL would pay up to 15% of the agreed value for the bad loans in cash and the remaining 85% would be government-guaranteed security receipts.
