As RBI’s August 27 deadline to resolve large stressed assets looms large, the Indian banking system is all set to face another round of insolvency proceedings.

As per a circular issued on February 12, the RBI asked banks to begin the resolution of stressed loans at the earliest when there is a delay in payments. Consequently, the country’s top bank regulator gave banks 180 days to resolve accounts above Rs2,000cr. Failing this deadline, they would need to refer the accounts for insolvency action if an out-of-court settlement falls through.

Media reports estimate that close to 60 stressed loan accounts worth Rs3 lakh crore will face insolvency proceedings.

These companies include Bombay Rayon, Gitanjali Gems, Gayatri Projects, Patel Engineering, Gammon India, GTL Infrastructure, Punj Lloyd, Reliance Defence & Engineering, Bajaj Hindusthan, Pratibha Industries, and McNally Bharat Engineering Co, etc.#casansaar (Source - IndiaInfoLine)