Govt asks PSBs to review top IBC cases every month

The government has directed heads of public sector banks (PSBs) to conduct monthly reviews of the top 20 cases awaiting bankruptcy courts at each of them, financial services secretary Vivek Joshi said on Friday.

- Subhash Narayan & Rhik Kundu

Such a review will likely bring down delays in the admission and resolution of such cases in the bankruptcy court, the official said.

"There are delays in admission stage," Joshi told reporters after a review meeting of MD and CEOs of public sector banks and other state-owned financial institutions, including the National Asset Reconstruction Co. Ltd (NARCL).

The government had called the meeting to review cases pending long for admission and resolution under IBC, and look for ways to clear up the pendency.

The review had become important given that in several IBC cases, over one year is spent just to get the matter admitted in tribunals, while the resolution process itself stretches far beyond the 360day timeline.