Axis Bank on Thursday said the bank has exposure to eight of the 12 accounts mandated by the Reserve Bank of India (RBI) to be sent to the National Company Law Tribunal.
Axis Bank on Thursday said the bank has exposure to eight of the 12 accounts mandated by the Reserve Bank of India (RBI) to be sent to the National Company Law Tribunal. In a regulatory filing, the bank said while its total fund-based outstanding on the eight accounts stood at Rs 5,071 crore and non-fund based outstanding was at Rs 212 crore, around 80% of the outstanding was secured. “Against this outstanding, the provision held was Rs 2,497 crore,” it said.
The central bank in its June 13 circular directed banks to initiate the insolvency resolution process in select accounts under the provisions of the Insolvency and Bankruptcy Code, 2015 (IBC). Bankers were given a fortnight from the notification to move the tribunal.
The 12 accounts, identified by the central bank are those to which banks have an exposure of more than Rs 5,000 crore, more than 60% of which has been recognised as NPAs. Once these cases are with the NCLT, the lenders need to set up a committee of creditors that will come up with a plan on how the asset will be tackled. If the committee is unable to find a solution within 180 days — this can be extended to 270 days — the borrowing entity will go into liquidation.