The Department of Financial Services (DFS) held a review meeting, attended by senior officials, the Insolvency and Bankruptcy Board of India, and top management of state-run banks. The meeting, led by Secretary M Nagaraju, focused on the progress of cases pending at the National Company Law Tribunal (NCLT). The CEOs of public sector banks were instructed to personally monitor the top 20 cases pending for admission and the top 10 accounts pending for resolution at the NCLT.
The secretary emphasized the need for swift action in disposing of cases where resolution plans are pending with the Committee of Creditors (CoC). He urged banks to adopt a strategic approach to streamline and strengthen the Insolvency and Bankruptcy Code (IBC) ecosystem, aiming to maximize value and enhance recoveries. The meeting acknowledged the progress made in cases admitted, resolved, and disposed of outside the IBC.
The secretary stressed the importance of adhering to timelines in the admission of Corporate Insolvency Resolution Process (CIRP) applications and the resolution of cases. Banks were advised to take a coordinated approach in arriving at final decisions on pending resolution plans with the CoC. They were also told to work with their counsels to ensure early admission of pending cases, minimizing delays in filing CIRP applications to expedite the resolution process.
The meeting aimed to enhance the efficiency and effectiveness of the IBC ecosystem, ensuring that banks take proactive steps to resolve pending cases and maximize recoveries. By personally monitoring key cases, CEOs of public sector banks will be able to provide focused attention, enabling the banks to take swift and decisive action. The outcome of the meeting is expected to lead to a more robust and efficient resolution process, ultimately benefiting the banking sector and the economy as a whole. Overall, the meeting highlighted the need for a strategic and coordinated approach to strengthen the IBC ecosystem and improve recoveries.