- The Finance Ministry has proposed setting up of a National Asset Management Company for which public sector banks can jointly put in capital.
- The agency may be involved in:
- Taking over Non-Performing Assets.
- Acts as an aggregator of NPAs and clear them quickly.
- Pick up large stressed assets entirely from a consortium instead of the normal practise of a partial take over.
- Stressed assets, bad loans and gross NPAs of the banks have been on the rise due to increased economic slowdown and delay in infrastructure projects.
- Other proposals by the Finance Ministry:
- Tough action against wilful defaulters, to an extent of changing the management of the defaulting companies.
- Banks could finance financially-sound buyer to acquire stressed assets or sick company.
- Read at: http://www.thehindu.com/todays-paper/tp-business/finance-ministry-mulls-nodal-agency-to-take-over-bad-loans/article6083791.ece