Mission clean-up: Banks to pull up loan defaulters

MUMBAI: In the backdrop of rising bad loans, India’s biggest lenders this week will have a face-off with truant borrowers at a meet aimed at drawing up plan to throw out inept and non-cooperative management from the boards of companies, three people familiar with the plans said.

Mission clean-up: Banks to pull up loan defaulters

A battery of bankers led by State Bank of India and ICICI Bank is going to grill the top management of companies on their repayment and debt reduction plans. Bankers expected to attend the meet scheduled on Monday and Tuesday said a list may be drawn up based on the ability of management to bring in fresh equity and its willingness to cooperate with the lenders. Also, all the 16 cases where banks have initiated strategic debt restructuring will be reviewed to arrive at ways to conclude the transactions.

These include companies such as Electrosteel Steel, Visa Steel, Lanco Teesta, Jyoti Structures and Monnet Ispat.