Question

Which bank has started insolvency resolution process against Lanco Infratech Ltd. following a directive from the Reserve Bank of India (RBI), while this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI recently?

• A. State Bank of India
• B. IDBI Bank
• C. Punjab National Bank
• D. Bank of India

Hint:

When answering current affairs questions related to banking and insolvency, always connect the institution (bank) with the company or directive mentioned by RBI/SEBI to avoid confusion.

Answer 1

The Correct Option is B

Step 1: Understand the context.
The Reserve Bank of India (RBI) identified 12 large corporate borrowers with high levels of non-performing assets (NPAs) for immediate insolvency resolution under the Insolvency and Bankruptcy Code (IBC). 

Step 2: Focus on the case of Lanco Infratech Ltd.
Among these borrowers, Lanco Infratech Ltd. was one of the first companies against whom insolvency proceedings were initiated. 

Step 3: Bank that initiated the process.
IDBI Bank was the lead lender that filed for insolvency proceedings against Lanco Infratech Ltd. as directed by the RBI. 

Step 4: Eliminate incorrect options.
- (a) State Bank of India → Largest lender but not the initiator in this case.
- (b) IDBI Bank → Correct; started insolvency resolution process.
- (c) Punjab National Bank → Not the lead initiator.
- (d) Bank of India → Not involved in initiating this process. \[ \Rightarrow \boxed{\text{IDBI Bank is the correct answer.}} \]