Bankers urged to approach higher authorities in insolvency cases

“Bankers have been suggested to take up issues related to delay in resolution processes with the higher levels of authority including bankruptcy and judicial courts,” said a source who attended the five-hour long meeting chaired by Corporate Affairs Secretary Injeti Srinivas.

Along with Insolvency and Bankruptcy Board of India (IBBI) Chairman M.S. Sahoo, Srinivas met bankers and resolution professionals of the 12 biggest default cases, which account for one-fourth of the gross non-performing assets (NPAs) in state-run banks.

“The bankers in the Committee of Creditors (CoC) are the vital stakeholders and they should agitate before different forums and escalate the matter to higher authorities as huge amount of money is being lost by them due to the delay in resolution or liquidation,” he said.

The RBI initiated two quarterly surveys to examine the current situation including the job scenario in manufacturing, services and infrastructure sectors.  Findings of the two surveys – Industrial Outlook Survey (IOS), and Services and Infrastructure Outlook Survey (SIOS) – would be significant as the country heads for the Lok Sabha polls in May. The IOS would be “based on qualitative responses on a set of indicators pertaining to demand conditions, financial conditions, employment conditions and the price situation”, RBI said.