Arun Jaitley said the tribunal had started receiving corporate insolvency cases by the end of 2016.
Finance Minister Arun Jaitley said on Thursday that commercial banks were likely to recover Rs 70,000 crore of bad loans by the end of March, helped by resolution of 12 large cases. Some of the big cases, such as Bhushan Power and Steel, and Essar Steel India are in advanced stages of resolution, the finance minister said, adding that they are likely to be resolved this financial year. He also said that the National Company Law Tribunal (NCLT) has so far resolved 66 cases, in which the banks have so far recovered Rs 80,000 crore.
Here are 10 things to know:
- The tribunal had started receiving corporate insolvency cases by the end of 2016, he said, and 1,322 cases have been admitted by it so far.
- The amount apparently settled in a total of 4,452 cases disposed at pre-admission stage is around Rs 2.02 lakh crore as per the tribunal's database, he wrote in a blog post on Facebook.
- Out of these cases, 66 have been resolved after adjudication while 260 cases have been ordered for liquidation.
- Describing the NCLT as a trusted forum of high credibility, Mr Jaitley said: "Those who drive the companies to insolvency exit from management. The selection of new management has been an honest and transparent process."
- "There has been no political or governmental interference in the cases," he added.
- Mr Jaitley said the increase in conversion of non-performing assets (NPAs) into standard accounts, and the decline in new accounts falling in the NPA category show a definite improvement in the lending and borrowing behaviour.
- The early harvest through the Insolvency and Bankruptcy Code (IBC) process has been extremely satisfactory, he noted.
- The IBC process "has changed the debtor - creditor relationship. The creditor no longer chases the debtor. In fact, it is otherwise."
- He said that between 2008 and 2014, banks lent indiscriminately and this led to a very high percentage of NPAs, which was highlighted by the asset quality reviews of the central bank.
- At present, 21 state-run banks in the country - holding two-thirds of assets in the sector - account for the bulk of the record $150-billion of soured loans last year. (With agency inputs)
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