FinMin asks banks to prevent defaulters from buying stressed assets

NPAs of public sector banks increased to Rs 7.33 lakh cr by June 2017

To ensure the success of bankruptcy process under the Insolvency and Bankruptcy Code (IBC), the Finance Ministry has asked banks to be vigilant to ensure that willful defaulters are prevented from buying same stressed assets again, official sources said.

As many as 12 accounts each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks are being under the Insolvency and Bankruptcy Code process.

The total outstanding of these accounts taken together is Rs 1.75 lakh crore.

Besides, banks are in the process of taking other large non-performing assets accounts to