Sunil Mehta committee on bad loans resolution has recommended a five-pronged strategy to deal with Non-performing Assets in the country's banking system, Finance Minister Piyush Goyal announced today. Finance Minister said the committee has not recommended to set up a bad bank. "Sunil Mehta panel on bad loans resolution has presented a balanced and comprehensive project 'Sashakt', a five-pronged strategy to deal with stressed assets," Goyal said.The five-pronged strategy include -- SME resolution approach, bank-led resolution approach, AMC/AIF led resolution approach, NCLT/IBC approach, and asset-trading platform. Spelling out government's plan to tackle banks' bad loan problems, interim Finance Minister Piyush Goyal said an independent asset management company will be set up and the committee has not recommendation to form a bad bank. He said that the AMC-led approach would be adopted for resolution of loans above Rs 500 crore. The financial institutions will enter into inter-creditor agreement to authorise lead bank to implement a resolution plan within 180 days. "If no resolution would be found in 180 days, the institutions would move to NCLT," he added.He said the government plans to focus on turning around assets in a manner that will create jobs, proposals are aligned with IBC process and laws.
from The Economic Times https://ift.tt/2z1RZ8t
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