Dena Bank to refer large defaulters to bankruptcy board

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KOLKATA: State-run lender Dena BankBSE 0.66 % said it is planning to refer some of the large defaulters on its books to the new bankruptcy board to take advantage of the new national law that allows banks to liquidate assets of a company after a certain time.

The Insolvency and Bankruptcy Board of India was set up on October 1, 2016 and has registered 11 cases for insolvency resolution.

Dena Bank Chairman Ashwani Kumar told ET that the bank is in the process of identifying a few accounts which would be referred to the Board.

“We would like to test out the system by referring a few cases first,” Kumar said.

The bank’s gross non-performing assets rose to Rs 11,302 crore or 14.79% at the end of the December from Rs 10,825 crore (9.85%) a quarter back.
Shares of the bank ended at Rs 37.85 Friday, while its 52-week high was Rs 47.70 and 52-week low was Rs 25.60 on BSE.