Govt expects recoveries to exceed Rs 1.80 lakh cr in FY19

Enthused by the impact of new insolvency and bankruptcy law, the government expects bad loan recoveries to exceed Rs 1.80 lakh crore target for the current financial year, an official said.

Some big accounts are in the process of getting resolved while some more are lined up for resolution under the Insolvency and Bankruptcy Code (IBC), a senior Finance Ministry official told.

"Going by the success rate, we hope that the recovery would exceed our own target of Rs 1.80 lakh crore through the IBC and other means," the official said citing some of the ongoing resolution of Essar Steel and Bhushan Power and Steel Ltd.

Banks hopes to write back more than Rs 1 lakh crore alone from the resolution of 12 NPA cases referred to insolvency proceedings by the RBI in its first list.

Banks recovered Rs 36,551 crore in the first quarter of 2018-19.

During 2017-18, banks recovered Rs 74,562 crore.

Satisfied with the progress of IBC, Finance Minister Arun Jaitley had said "now people have become broadly aware that the rules of the game in India have changed. The banks won't chase you anymore, you will have to chase them."

(Agencies)