Domestic lenders have launched aggressive steps to start insolvency proceedings against the companies named in the Reserve Bank of Indias second list of defaulters recommended for insolvency proceedings.
While many of the companies named in the second list are making desperate attempts to get their debt restructured, top lenders are preparing to file insolvency proceedings against them before the December 13 deadline in the cases where restructuring is expected to fail, Mint reported on Wednesday quoting a top banker.
Banks have been forced to set aside significant amounts to cover the risk of default, which have dented their bottom lines, and they are under pressure to hasten the debt resolution process, the Mint report suggested. …
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