Insolvency Resolution
Banks must ensure timely insolvency resolution for most benefit, says banking secy
This story was originally published at 21:32 IST on 25 November 2025
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NEW DELHI – Public sector banks must adopt a strategic approach to streamline and strengthen the insolvency and bankruptcy ecosystem for better value maximisation and enhancing recoveries, Department of Financial Services Secretary M. Nagaraju said Tuesday. They must also ensure both timely admission of corporate insolvency resolution process applications and timely resolution of the cases, the secretary said in a review meeting.
"During the deliberations on the cases where Resolution Plans are pending with the Committee of Creditors (CoC), banks were advised to take a coordinated approach for arriving at the final decision," the finance ministry said in a release. Nagaraju chaired the review meeting Tuesday to discuss the issues related to pending cases under the Insolvency and Bankruptcy Code. The meeting was attended by senior officials of the department, the Insolvency and Bankruptcy Board of India and the top management of PSU banks.
"Banks were told to pursue with their counsels for early admission of the pending cases for ensuring a more robust and efficient resolution process and also to minimise delays in filing CIRP (corporate insolvency resolution process) applications in order to expedite the resolution process," the release said.
The secretary also told chief executives of all state-owned banks to personally keep monitoring the top 20 cases pending for admission and 10 accounts pending for resolution at National Company Law Tribunal, pertaining to their bank. "Banks must take swift action to dispose cases where Resolution Plans are pending with CoC (Committee of Creditors)," the ministry said. End
Reported by Priyasmita Dutta
Edited by Deepshikha Bhardwaj
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