Merely 24% recovery from corporate insolvency cases in March quarter – Economic Times
KOLKATA: Banks would realise just about a quarter of their claims from 12 corporate debt resolution cases in the January-March period, dashing hopes for higher bad loan recovery in the last quarter of the fiscal.
The lenders will receive merely 17% of the Rs 29500 crore dues from Alok Industries, raising doubts over the future realization.
This is a matter of serious concern. This shows that either there are no tangible assets to back the loans or the assets were overvalued, United Bank of India chief executive, Ashok Kumar Pradhan, said.
The overall bad loan recovery through bankruptcy courts has remained dismal in the first two years of Insolvency and Bankruptcy Code. Banks could realise 43% of the claims in 94 loan default cases that …