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During the first half of the previous fiscal year, banks recovered 60,713 crore of bad debts.
"Due to the non-resolution of certain large accounts covered by the NCLT (National Company Law Tribunal), the BSPs were unable to reach the resolution objective of 1.80 crore lakh However, these accounts should be resolved during the current fiscal year, "the official said.
Banks recovered nearly 55,000 crores of rupees thanks to the resolution of the NCLT, said the official.
"Compared to 74,562 crores of rupees in 2017-2018, the resumption of the previous exercise almost doubled to reach 1,2 crore lakh of crore," said the official.
Two important accounts concerning Essar Steel and Bhushan Power & Steel Ltd are still pending resolution.
Both accounts are expected to be settled in the next few months and their recoveries could be around 50,000 crore.
JSW Steel revised its offer from 11,000 crore to 18,000 crore, to over 19,000 crore, while Tata Steel's last offer was 17,000 crore after refusing to revise its offer. ArcelorMittal has made an offer of 42,000 rupees for Essar Steel.
According to the official, the consolidation of public sector banks and higher recovery rates by state-owned lenders will feature on the government's agenda this fiscal year.
With regard to the liquidity crisis in nonbank financial corporations (NBFC), the manager said that there were solvency and liquidity issues in these companies.
"The Government and the Reserve Bank of India will take appropriate measures to address the problems affecting the NBFC sector," said the official.
Many NBFCs, including DHFL and Indiabulls Finance, have been subjected to severe liquidity pressure forcing them to stop relying on commercial paper.
Since the IT & FS crisis erupted, banks have been reluctant to lend to the sector, placing them in a difficult situation. It is to be feared that NBFCs will run out of money, which will lead to failures.
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