Corporate India: Dealing with a mountain of bad debt

Last Modified: Fri Sep 07 2018 21:36:31 GMT+0530 (India Standard Time)
  • 12 Feb 2018
    The Reserve Bank of India (RBI) scraps all debt restructuring schemes and makes resolution of bad loans time bound with the Insolvency & Bankruptcy Code becoming the main tool to deal with defaulters. Accounts with aggregate debt of more than Rs 2,000 crore will have to be taken to National Company Law Tribunal (NCLT) within 15 days if a resolution plan does not bear fruit in 180 days.
  • 70
    Number of large accounts identified as 'stressed'. An RBI circular which came into effect on 01 Mar 2018, asks banks to identify projects with even a day's default as stressed assets, and conclude resolution proceedings in 180 days. The 180-day deadline concludes on 27 Aug 2018.
  • Rs. 3.8 trillion
    Combined debt ($54 billion) of these stressed accounts, most of them in the power sector and also include some EPC and telcos companies.
  • 60
    Number of accounts worth Rs 3.5 trillion against whom bankruptcy proceedings are likely to be initiated, according to reports.
  • Rs. 14.7 trillion
    Amount of loans ($210 billion) where payments are in arrears. 90% of these loans have been extended by state run banks.
  • 34
    Number of stressed (unable to service their debt) coal based power projects as of Feb 2018.
  • 11
    Number of stressed power projects that a State Bank of India led consortium of banks had identified for possible takeover by new promoters under the Samadhan scheme (Scheme of Asset Management and Debt Change Structure). The projects are either complete or near completion and the scheme is an effort to avoid liquidation of these plants at throwaway considerations.
  • 12
    Number of companies where the aggregate exposure of the lenders is more than Rs 5,000 crore, and where there is little possibility of resolution through restructuring outside the National Company Law Tribunal (NCLT). Together, these companies account for 25% of the gross NPA's held by India's banks.