RBI set to release NPA data to show impact of February 12 circular, says report

The Reserve Bank of India (RBI) is planning to release data that will show the number of corporate companies defaulting on bank loans have fallen after the central bank's February 12 notification last year, The Economic Times reported.

“There is a proposal to come out with a ‘Mint Street Memo’ that will show improvement in default data since the new rule came into effect. The idea is to place the facts before everyone at a time when the industry associations are putting forward their views against the February 12 circular before the new governor,” a person familiar with the matter told ET.

Mint Street memos, released by RBI from time to time, are brief reports and analyses on contemporary topics. They are prepared by the RBI staff and Centre for Advanced Financial Research & Learning (CAFRAL).

The February 12 circular has been largely contested by the borrowers of stressed power companies where they took the stand that the decision to invoke the ‘Insolvency and Bankruptcy Code 2016’ should be of the bankers.

“Even though the subject is sub judice (with the petitions against the circular lying before the Supreme Court), the regulator can always come out with reports based on facts which are not classified..,” an unnamed banker told the newspaper.