Mint’s Pivot or Perish banking webinar on Thursday, bankers said this will let banks focus on giving out loans while letting the bad bank manage non-performing assets (NPA) and recover them.Zarin Daruwala, chief executive, India, Standard Chartered Bank, said the bad bank concept and the Troubled Asset Relief Program (TARP) worked extremely well in the US after the Lehman crisis.
She also referred to Danaharta, a government-backed asset management company in Malaysia to manage bad assets.“Similarly, in Malaysia, we have seen the Danaharta experience which was an extremely good experience and the way they went about it, they actually told the banks that if you do not sell the assets, you will have additional provisioning," said.