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Important meeting between Finance Ministry and PSU banks today


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The Finance Ministry is likely to meet Public Sector Undertaking (PSU) banks on matters related to insolvency. Sources told ET NOW that the important meeting between representatives of PSU banks and finance ministry officials is expected to take place on Friday, December 22.

As per the sources, the agenda of the meeting will revolve around the resolution of cases via the Insolvency and Bankruptcy Code, 2016 (IBC) and also the progress on the bad bank – NARCL (National Asset Reconstruction Company Ltd), the financial entity set up to buy Non-Performing Assets (NPAs).

Sources told ET NOW that the Department of Financial Services will be chairing the meeting and all public sector banks including the State Bank of India and others will be attending the meeting. PNB, and Union Bank representatives will also be present for the meeting.

National Asset Reconstruction Company Ltd (NARCL) was incorporated in July 2021 for disposing of NPAs. NARCL has been set up as a strategic initiative to clean up the legacy stressed assets with an exposure of Rs 500 crore and above in the Indian Banking system.

The Finance Ministry may also review the progress made on NARCL so far. The admission of cases under IBC has been under question due to the delay in admission in the National Company Law Tribunal (NCLT). Industry insiders say that many times, banks resolve these cases outside NCLT. These cases will also be discussed during the meeting on Friday and the Finance Ministry may review the matters.

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