Axis Bank Ltd. said it has an exposure of over Rs 1,800 crore to 12 accounts identified by the Reserve Bank of India in a second list that may need to be referred for insolvency proceedings. Unlike the first list released in June, banks have until December to try and resolve these accounts, failing which insolvency proceedings will be initiated.
The total fund-based outstanding was Rs 1,843 crore, while the non-fund based exposure stands at Rs 649 crore, the country’s third largest private sector lender said in an exchange notification.
Around 75 percent of the outstanding loans from the 12 defaulters are secured, Axis Bank said, adding that it has made provisions of Rs 862 crore across these 12 bad loan accounts. The central bank has asked Axis Bank to resolve the 12 non performing assets by December 13, failing which the firms must be taken up for bankruptcy.
The RBI sent its second list of defaulting companies to lenders earlier this week, recommending that these firms be referred for resolution via the Insolvency & Bankruptcy Code. The second list consists of a total of 30-40 names, two banking officials had told BloombergQuint earlier.