Govt aims to restore the health of banks

new Delhi Nov 12 :It's been 3 and half years since PM Modi took office.The government along with the RBI have taken some steps to restore the health of the banks from 2014. The Reserve Bank of India has initiated the cleaning of the balance sheets of the banks in 2015 by recognizing the stressed assests and NPA via the asset quality review . The government, on the other hand, has enacted Insolvency and Bankruptcy Code to speed up the insolvency process.

The Government in May has empowered the RBI to direct the banks to file INsolvency petitions in the NCLT so that the loans can be recovered. The RBI in his first has prepared 12 names and in the second list has named 40 companies which owe huge debts to the banks.

The list is as follows

Bhushan steel :90,000 cr
Videocon :58,000 cr
Jaypee :55,000 cr
ESSar group :50,000 cr
Alok Industries :25,000 cr
Jindal group :38,000 cr
Lanco :19,000 cr
Punj Lloyd :14,000 cr
ABG Shipyard :15,000 cr
Electro steels :14,000 cr
Aban Holdings :13,000 cr
Monnet Ispat :12,000 cr
Prayraj Power :12,000 cr
Era group : 7,000 cr

Total: Rs 422000 Cr (Data as of Dec 2016)

Currently, the banks have filed NCLT petitions against these companies in some cases and the Government has stated that more reforms would be taken to recover these bad loans .