Axis Bank today said the Reserve Bank has asked it to finalise the resolution plan for 12 accounts by December 13, failing which insolvency proceedings will have to initiated against them. In a regulatory filing, the private sector lender said it has a total exposure of Rs 2,492 crore in these 12 accounts.
Of this, total fund based outstanding of the bank was Rs 1,843 crore and non-fund based outstanding was Rs 649 crore. “The Reserve Bank of India has issued directions in their communication dated August 28 advising banks to finalise and implement viable resolution plan in select accounts by December 13, 2017, failing which, insolvency proceedings should be initiated in all the accounts mentioned and accordingly mandated provisions should be made by March 31, 2018,” Axis Bank said.
It, however, did not disclose which companies were on the list. It said around 75 per cent of the outstanding was secured and the provision held for this outstanding was Rs 862 crore. The Axis Bank stock closed 1.4 per cent up at Rs 507.65 on BSE.