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Bankers to revive bad bank concept

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MUMBAI : Indian Banks Association is reconsidering the option of bringing back the bad bank concept to resolve the existing legacy of stressed assets, according to two people familiar with the matter.

Banks are exploring whether to transfer loans under restructuring or those undergoing resolution in the National Company Law tribunal (NCLT) to the bad bank.

According to the one of the bankers cited earlier, the bad bank concept will be modelled around the Project Sashakt model which was proposed by a panel led by former Punjab National bank chairman Sunil Mehta two years ago.

According to the model, the bad loans will be transferred to an asset reconstruction company which will issue security receipts.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
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Deaths: 459 652
Recovered: 0
Brazil
Brazil
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Deaths: 608 235
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United Kingdom
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Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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