Mumbai: Banks have taken a huge 57 pc haircut in the 94 large accounts worth Rs 1.75 L cr which were resolved in FY19, recovering just Rs 75,000 crore or only 43 pc of the admitted claims, finds a report.
The numbers assume importance as the bankruptcy law enters the third year this month. As of March, there were 1,143 cases pending at various bankruptcy tribunals, and 32 pc of them are pending for over 270 days. The average resolution timeline for these 94 cases resolved was 324 days as against the stipulated timeline of 270 days.
“Only 94 stressed with a total claim of Rs 1,75,000 crore by financial creditors were resolved in FY19 with a recovery of Rs 75,000 crore or 43 pc of the admitted claims under the insolvency process approved by the various national company law tribunals (NCLTs),” says a joint study by Crisil and industry lobby Assocham.
The report said had these 94 companies were liquidated, the recovery would have been just 22 pc which is significantly lower than the recovery rate through normal resolution process.
