Bank of Maharashtra mulls to resolve 20-25 stressed MSME loans under pre-packaged resolution process
Mumbai, Apr 24 (KNN) Bank of Maharashtra is mulling to resolve 20-25 stressed Micro, Small and Medium Enterprise (MSME) accounts under the newly introduced pre-packaged insolvency resolution process in the coming months, said a senior bank official.
While speaking at a webinar organised by MVIRDC World Trade Center, Mumbai and All India Association of Industries, on Friday, Bank of Maharashtra's general manager (credit - large and mid-corporate, MSME) Sanjay Rudra said, "With the outbreak of the CoronaVirus, the stress on sectors like hospitality, luxury retail, tour operators, lodging and restaurant operators has increased considerably.''
''I expect around 20-25 stressed MSME accounts to be resolved under the pre-packaged insolvency resolution regime in the coming months," he added.
Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.
''Under the pre-packaged insolvency resolution system, the government has given an opportunity for MSMEs to resolve their stress at an early stage while holding control over their business,'' he added.
Now, MSMEs should maintain complete transparency in the whole resolution process to regain trust and confidence of lenders, Rudra said.