RBI sends second list of about 40 loan defaulters for insolvency proceedings: Srcs

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The Reserve Bank of India has sent the second list of over 40 large corporate defaulters that include Videocon, JP Associates, IVRCL and Visa Steel, among others, to be referred to the National Company Law Tribunal (NCLT), reports CNBC-TV18 quoting sources.

Among other loan defaulting companies — Uttam Galva, Castex, Jayswal Neco, Ruchi Soya, Nagarjuna Oil & Orchid Chemicals, East Coast Energy, SEL Manufacturing, Soma Enterprises, Asian Colour, Ispat Coated and Unity Infraprojects – are among the fresh list identified by the central bank to be referred to the NCLT under the Insolvency and Bankruptcy Code (IBC).

Most of the companies on the list are said to be from infrastructure and power sectors.

The total defaulter list may have 35-40 accounts and State Bank of India alone gets a list of 25-26 accounts, CNBC-TV18 sources added.

Shares of Visa Steel fell 1.24 percent in Tuesday’s trade to Rs 19.90 after the news, Videocon Industries’ shares fell 3 percent to Rs 18.35 apiece, Uttam Galva slipped 0.56 percent to Rs 26.70 per share.

In June, the central bank had identified 12 large stressed accounts to be taken to the NCLT. Each of these companies owed over Rs 5,000 crore with a total of around Rs 175,000 crore, accounting for 25 percent of the bad loans in the Indian banking system.

[“Source-moneycontrol”]