Saturday 24th June 2017

    IDBI initiated insolvency proceeding against Lanco, first among 12 accounts identified by RBI
    IDBI initiated insolvency proceeding against Lanco, first among 12 accounts identified by RBI - Economic Times
    Other accounts that are being doing rounds but could not be independently include IVRCL, Era Group, Prayagraj Power, Aban Holding, and ABG Shipyard.

    MUMBAI: Banks led by IDBI Bank has initiated insolvency proceeding against Lanco Infratech , the first among the 12 stressed accounts that were identified by the Reserve Bank of India after they were empowered to direct banks to take action against defaulting borrowers.Senior bank official told ET that IDBI Bank has initiated action under Insolvency and Bankrupcy Code after they received intimation from the central bank that Lanco Infratech is among the 12 accountsThe company has fund based exposure of Rs 7799 crore and non-fund based exposure of Rs 3349 crore as on March 2016.Two senior bank officials told ET that other accounts identified by RBI include Essar Steel which loans outstanding of Rs 44000 crore, Bhushan Steel (Rs 47,000 crore,) Electrosteel Steel (Rs 14,000 crore), Alok Industries (Rs 24000 crore), Jyoti Structures (Rs 5000 crore), Monnet Ispat (Rs12000 crore) and Jaypee Associates (Rs 55000 crore).Other accounts that are being doing rounds but could not be independently include IVRCL , Era Group, Prayagraj Power, Aban Holding, and ABG Shipyard The RBI’s internal committee identified 12 accounts on the criteria that they have outstanding loan of Rs 5000 crore and is classified as non-performing loan as on March 2016.These accounts constitute 25% of total NPAs.SBI, which is lead bankers in six of accounts identified by RBI, has called meeting of lenders mid of this week to arrive as consensus among lenders on the resolution plan before initiating insolvency proceeding.

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