The large accounts are mainly those where banks have initiated resolution and are classified as restructured standard assets. They are also filing insolvency petitions for some of the 28 accounts which were part of central bank’s second defaulter list. The central bank has warned banks that they will be penalised for failure to adhering the timelines. Lenders shall continue to pursue such cases as per the earlier instructions,” the RBI said. Banks must also vet the resolution plan through credit rating agencies for independent credit evaluation (ICE) of residual debt.

Source: Mint February 12, 2018 18:26 UTC