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Government likely to announce policies to tackle bad loans
April 24, 2017
- India’s banks, for long laboring under a mountain of bad loans, can expect a government intervention soon.
- The new policy for resolving non-performing assets (NPAs) is likely to take a ‘targeted approach’ by first tackling the largest 40 or 50 NPAs, spread across four or five sectors, sources said.
- The RBI’s oversight committee (OC) is likely to get special powers to resolve NPAs.
- So far, the OC does not have authority to resolve NPAs.
- The OC was set up under the scheme for the sustainable structuring of stressed assets (S4A) to oversee the loan restructuring process in a transparent manner.
