NEW DELHI, June 12 (Reuters) - India’s central bank is at an advanced stage of preparing a list of bad loans where resolution is required under the country’s insolvency and bankruptcy rules, Finance Minister Arun Jaitley said on Monday.
Last month, India tweaked its laws to help tackle a record $150 billion in troubled bank debt. The government has authorised the Reserve Bank of India (RBI) to direct banks to initiate an insolvency resolution process in the case of a default under provisions of the bankruptcy code.
“The RBI is at a fairly advanced stage of preparing a list of those debtors where a resolution is required through the IBC (Insolvency and Bankruptcy Code) process and you’ll shortly be hearing about it,” Jaitley told reporters after meeting bank chief executives.
The finance minister also said the government was actively working on consolidating state-run banks, although Monday’s meeting did not discuss the topic. (Reporting by Rajesh Kumar Singh; Writing by Devidutta Tripathy; Editing by Richard Borsuk)