As the Reserve Bank of Indias (RBI) deadline to resolve large stressed assets ends on Monday, as many as 60 stressed loan accounts worth over Rs 3 lakh crore stare at insolvency proceedings.
This is a direct impact of the central banks circular released on February 12.
Bankers are attempting to resolve the non-performing assets (NPAs) and other stressed loan accounts outside of the insolvency process in order to avoid large haircuts or loan losses.
In the circular, RBI had told banks that they must initiate the plan for resolution of stressed assets as soon as they witness a delay or default in payments starting March 1. The banking regulator gave banks 180 days to resolve accounts above Rs 2,000 crore, failing which th…
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