The Finance Ministry is likely to meet Public Sector Undertaking (PSU) banks on matters related to insolvency. Sources told ET NOW that the crucial meeting between representatives of PSU banks and finance ministry officials is expected to take place on Friday, December 22.
Crucial meeting between Finance Ministry and PSU banks on Friday – Inside Details
Finance Ministry PSU banks meeting- What to expect
It is reliably learnt that the agenda of the meeting will revolve around the resolution of cases via the Insolvency and Bankruptcy Code, 2016 (IBC) and also the progress on the bad bank – NARCL (National Asset Reconstruction Company Ltd), the financial entity set up to buy Non-Performing Assets (NPAs).
National Asset Reconstruction Company Ltd (NARCL) was incorporated in July 2021 for disposing of NPAs. NARCL has been set up as a strategic initiative to clean up the legacy stressed assets with an exposure of Rs 500 crore and above in the Indian Banking system.
The Finance Ministry may also review the progress made on NARCL so far. The admission of cases under IBC has been under question due to the delay in admission in the National Company Law Tribunal (NCLT). Industry insiders say that many times, banks resolve these cases outside NCLT. These cases will also be discussed during the meeting on Friday and the Finance Ministry may review the matters – sources told ET NOW.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.