The Indian government has directed the chiefs of public sector banks (PSBs) to closely monitor the top cases pending at the National Company Law Tribunal (NCLT). The move aims to expedite the resolution of these cases and maximize the recovery of bad loans. The NCLT is a quasi-judicial body that deals with corporate insolvency and bankruptcy cases.
The government has identified the top 12 cases pending at the NCLT, which account for a significant portion of the total bad loans in the banking system. These cases involve large corporate debtors who have defaulted on loan repayments, and the banks are seeking to recover their dues through the NCLT.
The PSB chiefs have been asked to personally monitor these cases and ensure that all necessary steps are taken to expedite their resolution. This includes filing replies to the NCLT, providing necessary documentation, and engaging with the resolution professionals appointed by the tribunal.
The government’s directive is part of its efforts to tackle the mounting bad loans in the banking system, which have been a major concern for the economy. The non-performing assets (NPAs) of PSBs have risen significantly in recent years, and the government has been taking various measures to address the issue.
The NCLT has been playing a crucial role in resolving corporate insolvency cases, and the government is keen to ensure that the process is expedited. The tribunal has been handling a large number of cases, and the government wants to ensure that the top cases are resolved quickly to maximize the recovery of bad loans.
The PSB chiefs have been asked to submit a monthly report on the progress of these cases to the Department of Financial Services. The government will also be monitoring the progress of these cases closely and will take necessary steps to ensure that the resolution process is expedited.
Overall, the government’s directive is aimed at ensuring that the top cases pending at the NCLT are resolved quickly and efficiently, which will help in maximizing the recovery of bad loans and reducing the NPAs of PSBs. The move is part of the government’s broader efforts to tackle the bad loan problem and strengthen the banking system.