State-run banks are set to invoke the personal guarantees given by as many as 300 promoters for corporate loans following instructions from the finance ministry, two people with direct knowledge of the development said. According to industry estimates, promoters have provided personal guarantees to state-run banks for dues worth ₹1.85 trillion. “All cases of ₹50 crore and above where personal insolvency cases can be filed in order to ensure that promoters pay up are under review." Legal experts said invoking personal guarantees can be tricky for lenders and entails a lengthy legal process. In July, the Supreme Court asked the finance ministry why state-run banks have not invoked personal guarantees of big corporate loan defaulters.

Source: Mint September 21, 2020 00:22 UTC