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12
July 2017
 |
SBI (The Total Investment & Insurance Solutions)
The
State Bank of India has not been "rushing towards" the new Insolvency
and Bankruptcy Code (IBC) to resolve cases of defaults as the entire ecosystem
required for the new law has not so far been fully created, its chairperson
Arundhati Bhattachrya said on Tuesday.
"The
banking sector has in one voice asked for the Bankruptcy Code. As the country
matures and evolves, it is necessary to have a judicial framework for orderly
resolutions of assets. We cannot have makeshift structures that we were having
earlier. So, we have been asking for a bankruptcy law and that has come. The Total Investment & Insurance Solutions
"Now,
the reason why we have not been rushing towards this is because with the law
also you need to set up the ecosystem," she said.
Bhattacharya
noted that first of all, the bench of National Company Law Tribunal (NCLT) has
to be created, people have to be deputed on the bench and next, one needs to
create an information utility, which has not come yet. The Total Investment & Insurance Solutions
She
also cited the requirement of certified and registered resolution professionals
to go with the resolution process. The
Total Investment & Insurance Solutions
"So,
it has taken a little time for the law to be passed, rules to be notified and all
the infrastructure to be created. Now, the ecosystem has begun getting
created...it has been created, but not fully. And that is why we have seen that
slowly the cases have been going on," she said.
The
SBI chief said all the 12 stressed accounts, which were identified by the
Reserve Bank of India, were receiving its attention and it hoped to see fast
resolution for the settlement of dues through the IBC. The Total Investment & Insurance Solutions
"All
of the stressed accounts are receiving our attention. As and when it will come
up in front of the NCLT, we will be making our representations. And we hope
that these resolutions will happen as fast as it currently laid out in the
law," she said.
Last
month, the apex bank had identified 12 large accounts with exposure of more
than Rs 5,000 crore and more than 60 per cent of which is recognised as NPAs.
Banks have to refer to the IBC for these accounts. The Total Investment & Insurance Solutions
Bhattacharya
said the amount of provisioning that needs to be made on the 12 stressed
accounts would "slightly" be above of what the bank would have made
in any case.
"It
will obviously hit the bottomline (of SBI), but not to that extent," she
said.
She
was in the city for the inauguration of bank's wealth management services and
Bhattacharya said the bank is among the first PSU lender to introduce such
services. It is targeting to have SBI Exclusif outlets in 13 centres in the
country in the current financial year.The
Total Investment & Insurance Solutions
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