RBI identifies 12 loan accounts constituting 25% of gross NPAs for immediate resolution under bankruptcy law

The RBI’s Internal Advisory Committee has identified 12 accounts each having more than 5,000 crore rupees of outstanding loans. It accounts for 25 percent of the current gross Non Performing Assets for immediate referral and resolution under the bankruptcy law. 

The Reserve Bank, in a press release yesterday said its Committee has agreed to focus on large stressed accounts which were classified partly or wholly as non-performing from amongst the top 500 exposures in the banking system.

The Committee has, in particular recommended that all accounts having more than five thousand crore rupees as outstanding loan as of 31st March 2016 should be immediately taken up for resolution.Without naming the defaulters, the apex bank has said the lenders will be asked to initiate insolvency proceedings to recover the dues. It said that such cases will be accorded priority by the National Company Law Tribunal.

As regards the other non-performing accounts, the Internal Advisory Committee has recommended that banks should finalise a resolution plan within six months. 

It added that if a viable resolution plan is not agreed upon then the banks would be required to file for insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.Progress made towards



resolving crisis between Qatar, Gulf neighbours: US State Dept

US State Department has said progress has been made towards resolving the crisis between Qatar and its Gulf neighbours after senior American officials met leading players in the standoff. 

Spokeswoman Heather Nauert said everyone is working toward an agreement of combating terrorism and that is the main focus. She, however, refused to say whether Washington regards Qatar as a sponsor of terror or whether the closure of the border and ban on Qatari flights in Saudi airspace amount to a blockade.

Earlier, Secretary of State Rex Tillerson had met Saudi Foreign Minister Adel al-Jubeir, whose government accuses Qatar of sponsoring extremist groups and has closed its border.

Meanwhile, Turkish Foreign Minister Mevlut Cavusoglu will visit Qatar today for talks with Emir Sheikh Tamim bin Hamad Al-Thani, amid a crisis in Doha's ties with Saudi Arabia and other Gulf states. 

Foreign ministry said, Cavusoglu will also hold talks with Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani as Ankara eyes with concern the crisis between its chief regional ally Qatar and its Gulf neighbours. The ministry said recent regional developments would also be discussed.