India News | Finmin Asks Banks to Expedite NPA Resolution Process by Minimising Delays at NCLT

New Delhi, May 8 (PTI) Financial Services Secretary M Nagaraju on Thursday reviewed cases pending for admission at NCLT and asked banks to expedite the resolution process by minimising delays.

The review entailed a follow-up on important issues for improving the effectiveness of insolvency resolution process, the finance ministry said in a statement.

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During the review meeting attended by senior officials of Department of Financial Services (DFS), the Ministry of Corporate Affairs, the Insolvency and Bankruptcy Board of India, and the top management of Public Sector Banks, the Secretary emphasised the need for strengthening the recovery framework through coordinated efforts and ensuring a more robust and efficient resolution process.

Banks were advised to expedite the resolution process by minimising delays in filing Corporate Insolvency Resolution Process (CIRP) applications, avoiding asking for unnecessary adjournments and simultaneously keeping other channels of recovery open, it said.

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The advocates of the banks should oppose any attempts to delay proceedings on frivolous grounds by the opposing parties, it was discussed.

It was informed that few accounts have been resolved by banks since the last review through various mechanisms under recovery.

DFS urged the management of the banks to review their top 20 cases regularly and also monitor those accounts where Resolution Plans are pending for consideration with the Committee of Creditors (CoC) for more than three months.

In addition, it said, banks were told to focus their attention on getting stay orders vacated so as to resume the resolution process without further loss of time.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)