The government expects recoveries of bad debts to exceed 1.80 lakh Crore Rs during the fiscal year 19

Excited by the impact of the new insolvency and bankruptcy law, the government expects bad debt recoveries to exceed the Rs 1.80 lakh target for the current fiscal year, said a manager. Some major accounts are in the process of being resolved while others are awaiting resolution under the Bankruptcy and Insolvency Code (IBC), a senior official at the Ministry of Finance told PTI.

the recovery would exceed our target of 1.80 Rupees lakh crore through the IBC and other means, "said a senior official citing some of the current resolutions concerning Essar Steel and Bhushan Power and Steel Ltd.

Banks hopes to be able to return more than Rs 1 lakh crore alone, resulting from the resolution of 12 NPA cases, referred to an insolvency proceeding initiated by the RBI in its first list.

Banks recovered 36,551 rupees in the first quarter of 2018. Banks recovered 74,562 crores in 2017-18.

Satisfied with IBC's progress, Finance Minister Arun Jaitley said: "People are now widely aware that the rules of the game in India have changed. continue, you will have to chase them. "

As a result, recoveries have accelerated," he said, adding that recoveries were not only because resolutions had been made at the NCLT, but also fearing that if they crossed red line, they are condemned to the IBC process.

"The unexpected consequence was that potential defaulters were beginning to realize that as soon as you crossed the red line, at least you would go out and never come back. And if you have seen the last or the last two quarters, potential defaultors beg, borrow, steal and pay back. That's why the banks started to take money, even outside the NCLT system, from potential defaultors who did not want to cross the red line, "he said. [19659002] In the first list, two cases Important, Essar Steel and Bhushan Power and Steel Ltd., are about to be resolved, while Binani Cement and Jaypee Infratech are also being processed.

Lenders expect to recover close to 86% loan of 49,000 crores of rupee in the case of Essar Steel ArcelorMittal agreed to pay 50,000 crores of rupees in total, including a capital injection of 8,000 crores of capital, to acquire the company. [19659002] In the first call for tenders, Bhushan Power and Steel received offers of 11,000 crore from JSW Steel, 17,000 crore from Tata Steel and 18,500 crore from Liberty House, and JSW Steel revised its offer to 19 700 crores of rupees.

The year Last June, RBI's internal advisory committee had identified 12 accounts, each representing more than 5,000 outstanding loans and representing 25% of the total NPAs.

Further to the RBI notice, the banks referred to Bhushan Steel Ltd., Bhushan Power & Steel Ltd., Essar Steel Ltd., Jaypee Infratech Ltd., Lanco Infratech Ltd., Monnet Ispat & Energy Ltd., Jyoti Structures Ltd., Electrosteel Steels Ltd. and Amtek Auto Ltd., Era Infra Engineering Ltd., Alok Industries Ltd. and ABG Shipyard Ltd. at NCLT. These accounts together have a total loan of 1.75 lakh crore of Rs.