Live
- Usha hosts Karra Samu Championship in Andhra Pradesh
- Kadapa Municipal Corporation Commissioner Inspects Sanitation and Vehicle Depot Operations
- Piaggio Vehicles commissions its first Motoplex dealership in Visakhapatnam
- RTV's Baseless Allegations Against Kadapa MLA Condemned
- Forever New Announces Triptii Dimri as a Global Brand Ambassador
- Call for Investigation into Illegal Activities of Budda Real Estate
- Indian Railways runs 6556 special Trains during Dasara and Deepawali
- District SP Rohith Raju Hands Over Reward Cheques to Surrendered Maoists
- Zaggle strengthens Leadership with the appointment of ex-Kotak Mahindra Bank’s Virat Diwanji as Additional Director
- Don't read too much into meeting with our Party leaders: DK Suresh
Lanco Infra in insolvency trouble
In a major development, Reserve Bank of India (RBI) has directed IDBI to initiate corporate insolvency resolution proceedings for Lanco Infratech Ltd (LITL) under the Insolvency and Bankruptcy Code (IBC). Lanco Infra is one among 12 NPA accounts identified by RBI and a part of the list sent to PSBs for referring to National Company Law Tribunal (NCLT). IDBI Bank is the lead bank of LITL.
RBI asks IDBI to initiate insolvency process against it on 11,367 cr loan; shares in tailspin
​Hyderabad: In a major development, Reserve Bank of India (RBI) has directed IDBI to initiate corporate insolvency resolution proceedings for Lanco Infratech Ltd (LITL) under the Insolvency and Bankruptcy Code (IBC). Lanco Infra is one among 12 NPA accounts identified by RBI and a part of the list sent to PSBs for referring to National Company Law Tribunal (NCLT). IDBI Bank is the lead bank of LITL.
“Lanco Infratech Limited (LITL) in vide letter dated June 17, 2017, intimated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that RBI directed IDBI Bank, the lead bank of LITL, to initiate Corporate Insolvency Resolution Process (CIRP) for LITL under the Insolvency and Bankruptcy Code, 2016,” said Lanco Infra in a statement to BSE.
According to RBI, these 12 accounts owe Rs 2.5 trillion to the domestic banking system and account for 25 per cent of gross bad loans.
“The amounts mentioned in above referred letter shall be read as Rs 8,146 crore for fund-based outstanding exposure and Rs 3,221 crore for non-fund based outstanding exposure as on March 31, 2016,” Lanco Infra further said.
Meanwhile, Lanco Infratech shares on the domestic bourses tanked after the news that RBI’s action on non-performing assets (NPAs) spread in the market. Lanco Infratech’s stock on Monday slumped 20 per cent to close at Rs 1.88, its lowest trading permissible limit for the day as also its 52-week low, on BSE. At NSE, shares of the company tanked 19.14 per cent to end at Rs 1.90 - its lower circuit limit.
Last week, RBI’s internal advisory committee (IAC) had sent a list of 12 accounts to bankers for immediate reference under IBC. These accounts are with Punjab National Bank (PNB), SBI (six of them), ICICI Bank, IDBI Bank, Union Bank and Corporation Bank. These 12 accounts referred by RBI have an exposure of more than Rs 5,000 crore each, with 60 per cent or more classified as bad loans by banks as of March 2016.
Total NPAs of the banking system stand at over Rs 8 trillion of which Rs 6 trillion are with public sector banks. Last month, the government had cleared an ordinance to amend the Banking Regulation Act, giving the RBI more powers to direct banks to resolve bad loans.
