(ET)
The Reserve Bank of India (RBI) has been examining about 200 bad-loan accounts going as far back as 2011as part of its annual inspection of bank books to preempt any nasty surprises in bankruptcy court or subsequent to debt resolution, said several people with knowledge of the matter.
These include the accounts of Videocon, Essar Steel, ABG Shipyard, Bhushan Steel and Monnet Ispat, they said. The central bank is looking at repayment history, classifications, provisions and debt restructuring among other things to ensure that all procedures were correctly followed, the people said.
“The RBI has sought details from some banks regarding the provisions made in some of the big stressed accounts, the asset classification adopted by various banks for the same account. I believe the regulator is assessing whether the correct processes were followed,” said a banker. “This is being carried out along with the annual inspectioninspection of bank books conducted by the regulator every year.” RBI did not respond to queries.
