State Bank of India (SBI) has set up a team of experts to deal with the resolution process of at least 32 defaulters and a few of them have already been referred to insolvency courts, according to three people aware of the matter.

All these cases have been identified by the Reserve Bank of India (RBI) in its two lists of around 40 defaulters sent to banks.

Twelve cases have already been referred to National Company Law Tribunal (NCLT), which handles insolvency matters, following the 13 June directive of RBI. The remaining accounts are part of RBI’s second list, where banks have to come up with a resolution by 13 December. If they fail to draw a resolution plan, RBI has mandated banks to take these borrowers to NCLT. SBI has exposure to at least 20 accounts that are part of the second list of defaulter accounts. The move to set up a dedicated team is to ensure quicker decision making, said one of the three people, requesting anonymity.

“Right now the NCLT related accounts are being handled by various teams at the bank in a scattered way. Setting up a dedicated team will bring in a sharper focus to track these accounts,” he said.

According to the second person, NCLT process requires extensive follow-ups and coordination with internal teams, as well external agencies such as lawyers, consortium banks, and resolution professionals. This has resulted in added pressure on mid and large corporate business units.

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