Department of Financial Services Urges PSB Chiefs to Personally Monitor Top Insolvency Cases Amid Delays

Public sector bank chiefs were on Tuesday advised by Department of Financial Services (DFS) Secretary M Nagaraju to personally monitor the top twenty cases pending for admission and the top ten accounts awaiting resolution before the National Company Law Tribunal (NCLT), as part of a wider review of delays in insolvency matters.

In a press release, DFS said Nagaraju chaired a meeting with senior officials of the department, the Insolvency and Bankruptcy Board of India and top management of public sector banks to review issues related to pending cases under the Insolvency and Bankruptcy Code (IBC). Progress in cases admitted and resolved at the NCLT, as well as matters disposed of outside the IBC, was acknowledged, while major cases awaiting admission and resolution at various benches were examined.

Nagaraju emphasised that timelines for admission of corporate insolvency resolution process (CIRP) applications and for completing resolutions must be adhered to. Banks were advised to adopt a coordinated approach on resolution plans pending before Committees of Creditors (CoCs).

Lenders were also told to pursue early admission of pending cases with their counsel to ensure an efficient resolution process and to avoid delays in filing CIRP applications. DFS further asked banks to take note of the Insolvency and Bankruptcy Board of India's circular dated November 4, 2025, and ensure that resolution professionals file the required undertaking before Special PMLA Courts for restitution of assets attached by the Enforcement Directorate.

The release added that collaboration among stakeholders must be streamlined to prevent delays in admission and resolution at the NCLT.

Nagaraju also urged banks to adopt a strategic approach to strengthen the IBC ecosystem, maximise value and enhance recoveries.

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