(HT)
The government is set to promulgate an Ordinance to help banks tackle the menace of mounting bad loans, which is denting profits of lenders, slowing credit flow to industry and hurting the economy. The cabinet on Wednesday approved promulgation of an ordinance to amend the Banking Regulation Act to speed up recovery of bad loans.
The move comes after clarion calls from lenders who have been jostling with stressed assets mounting to about Rs 10 lakh crore, or close to 7% of India’s GDP, as of December-end.Here are five ways the government and Reserve Bank of India can speed up recovery of non-performing assets (NPAs).
