Lenders send most firms from second list to NCLT

The RBI has asked banks to refer all firms that have failed to repay their dues on time to the NCLT

Banks moved the National Company Law Tribunal (NCLT) on Wednesday for insolvency proceedings against more companies.
 
Compared to an earlier list of 12 large corporate loan defaulters referred by the Reserve Bank of India (RBI) for proceedings under the Insolvency and Bankruptcy Code (IBC), the second list of companies includes smaller power and steel units.
 
Banks will have to make 50 per cent provisions on loans to these companies’ during the current quarter.
 
“We have sent most of the companies to the NCLT, barring a few that are close to resolution,” State Bank of India Chairman Rajnish