RBI releases names of six stressed accounts, bankers given 15 days to take legal action

The RBI has given a time of 15 days to bankers to take legal action on the six stressed accounts that are found in the Insolvency and Bankruptcy Code(IBC). The RBI has mentioned the names of six stressed accounts to the banks on June 15,2017.

On June 13,2017, internal advisory committee (formed by RBI) identified 12 accounts, covering 25 per cent of bad loans in the banking system, to be immediately resolved under IBC.
 
Essar Steel, Bhushan Steel, Bhushan Power & Steel, Monnet Ispat, Alok industries and Electrosteel Steels are the six companies out of twelve identified, whose combined debt is of about Rs 1.9 lakh crore. Loan exposure of these six companies is of over Rs 5,000 crore, out of which about 60 per cent have been recognised as non-performing asset by the lenders.
 
Among these six companies, Bhushan Steel is having the highest exposure of debt of Rs 43,500 crore, then Bhushan Power and Steel having the exposure of Rs 37,400 crore, followed by Essar Steel at Rs 32,000 crore, Alok Industries at nearly Rs 22,075 crore, Monnet Ispat at Rs 12,115 crore and Eletrosteel Steels at Rs 10,273 crore.
 
In a next few days the list of remaining six accounts will also be disclosed to the bankers. Once disclosed at the National Company Law Tribunal (NCLT), an insolvency professional will be appointed by the lenders to suggest a resolution plan with 75 per cent approval of creditor’s committee.