Finance ministry asks banks to prevent defaulters from bidding own assets

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PTI reported that to ensure success of bankruptcy process under the Insolvency and Bankruptcy Code (IBC), the Finance Ministry has asked banks to be vigilant to ensure that wilful defaulters are prevented from buying same stressed assets again. The report quote a senior official as saying that “It has been brought to the notice of the Finance Ministry that some of the wilful defaulters are making bid to buy assets of those cases which have been referred under IBC. The resolution is crucial to the entire banking sector and therefore banks have been advised to be vigilant so that wilful defaulters do not get benefits of the process. Banks have to be very conscious of this fact that such defaulters should not find way to get into system again.”

As many as 12 accounts each having more than INR 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks are being under the Insolvency and Bankruptcy Code process. The total outstanding of these accounts taken together is INR 1.75 lakh crore.

Source : PTI