FinMin asks public sector banks to monitor top 20 insolvency cases

New Delhi, December 22

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The Finance Ministry on Friday asked heads of public sector banks to monitor and review the top 20 Insolvency and Bankruptcy Code (IBC) cases as part of their bad assets management.

Bad assets management

• The meeting also reviewed the working of the National Asset Reconstruction Company Limited (NARCL)
• As per the provision, NARCL would pay up to 15% of the agreed value for the bad loans in cash and the remaining 85% would be government-guaranteed security receipts

During a meeting with managing directors and CEOs of public sector banks (PSBs), Financial Services Secretary Vivek Joshi asked them to review the top 20 cases monthly for their resolution.

The meeting also reviewed the working of the National Asset Reconstruction Company Limited (NARCL).

Going forward, the Finance Minister would also review the functioning of banks on various aspects.