New Delhi, July 11 -- Some public sector banks are not in favour of the government exploring the Insolvency and Bankruptcy Code route for stressed central government enterprises, fearing this would make for a more complicated debt resolution process.

Executives at state-owned financial institutions said the government's backing and guarantees on Central Public Sector Enterprises (CPSE) borrowings and asset monetisation help them settle claims smoothly without having to write-off large portions of debt.

But if the government's proposal goes through, lenders fear stressed CPSEs may head to the National Company Law Tribunal (NCLT), where resolutions are often time-consuming involving multiple stakeholders.

The central government is re-eva...