India’s central bank, the Reserve Bank of India (RBI), is preparing a second list of steel companies to be referred to the National Company Law Tribunal (NCLT) under the newly framed Insolvency and Bankruptcy Code, a senior banking official said on Wednesday, August 2.
The official said that the second list comprises of a greater number of financially-stressed steel companies and similarly stressed companies from other sectors.
Although he declined to identify the steel companies stating that the RBI will announce the official list within the next few days, banking sources said that it will include at least three more steel companies along with one in the infrastructure sector.
Last month the RBI announced a list of 12 companies to be referred to the NCLT under the bankruptcy code, with the companies in question, including four private sector domestic steel producers, accounting for 25 percent of total defaults to commercial banks in India.