Calcutta: Allahabad Bank has signed a memorandum of understanding with the government-owned National E-Governance Services Ltd (NeSL).

The partnership could help in minimising the resolution period for cases referred by the bank to the National Company Law Tribunal.

NeSL is India's first Information Utility (IU) registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016.

NeSL's primary role is to serve as a repository of legal evidence, holding the information pertaining to any debt/claim, as submitted by the creditor and verified and authenticated by the other parties to the debt.

Allahabad Bank officials told The Telegraph that the bank would be able to avail of services such as electronic submission of financial information, safe and accurate recording, verification and authentication of information.

Financial information includes records of liabilities and assets of the borrower, balance sheets and cash flow statements and instances of default against debt.

"With mounting NPAs and resolution being the need of the hour, NeSL can play a great role in minimising the resolution period. Being authenticated by both the lender and borrower, the IU services can also be used by various courts of law besides NCLT," Allahabad Bank said.

Allahabad Bank managing director and CEO Usha Ananthasubramanian said this was the first such agreement signed in the PSU bank space.

S. Ramann, managing director and CEO of NeSL, said: "The stored information can be accessed by the specific accounts as well as resolution professionals and NCLT. The system would lead to quick solutions for litigations by defaulters to delay the process."