Allahabad Bank inks MoU with NeSL
January 1, 2018
State-run Allahabad Bank on Saturday signed an MoU with the government owned National E-Governance Services Ltd (NeSL) for a the tie-up that could help in minimising the resolution period in NCLT (National Company Law Tribunal) referred cases. NeSL is the first Information Utility entity registered by Insolvency and Bankruptcy Board of India under the aegis of the Insolvency and Bankruptcy Code, 2016.
“With mounting NPAs and resolution being the need of the hour especially in the high value loan accounts, NeSL can play a great role in minimizing the resolution period in NCLT referred cases,” the lender said in a statement.
Allahabad Bank’s MD and CEO Usha Ananthasubramanian said that the MoU signed with NeSL was the first agreement signed by a lender in the public sector bank space.
This MoU signifies core functions of NeSL, like accepting electronic submission of financial information, safe and accurate recording, verifying and authenticating the financial information submitted and providing access to information stored and services incidental to the aforesaid services would be available to the city headquartered lender. NeSL’s MD and CEO S. Ramann said that the information utility services would serve as a storehouse of authenticated financial information which can be accessed by any concerned parties to specific accounts as well as by resolution professionals and NCLT.
He also said that the system would lead to early and quick solutions for frivolous litigation created by defaulters to delay the process.