(HT)
With the banking sector reeling under the impact of Rs 8 lakh crore stressed assets, the government and Reserve Bank of India on Friday drew up a plan to act on top defaulters.Sources told HT, finance minister Arun Jaitley discussed with RBI officials various options to deal with the menace of non-performing assets (NPAs) which was plaguing the banking system and preventing lenders from lowering interest rates.
One of the alternatives that the government and RBI was considering for some time now was to set up of a “bad bank” to deal with the problem of non-performing loans, as it has been suggested by chief economic adviser Arvind Subramanian.Reserve Bank Deputy Governor Viral Acharya had floated the twin concept of Private Asset Management Company (PAMC) and National Asset Management Company (NAMC) for resolution of stressed assets.
