RBI acts to counter bad loans

MUMBAI Thu Jan 30, 2014 7:48pm IST

A cashier counts rupees inside a bank in Mumbai December 6, 2013. REUTERS/Danish Siddiqui/Files

A cashier counts rupees inside a bank in Mumbai December 6, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The Reserve Bank of India (RBI) on Thursday released a framework to help banks recover bad debts in an effort to ease the financial stress on lenders as the economy slows.

The RBI wants to improve early identification and timely restructuring of assets and, amongst other measures, proposed reforming the restructuring process by mandating independent evaluation of large value restructurings.

(Click on the link for more details: link.reuters.com/mud56v)

In December the central bank had proposed rules for early detection of financial distress.

Concern over banks' bad loans has been growing among policymakers in recent months as economic growth subsided to its slowest pace in a decade.

Stressed loans in India - those categorised as bad and restructured - total $100 billion, or about 10 percent of all loans.

(Reporting by Nandita Bose; Editing by Toby Chopra)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Paying for Bail

Paying for Bail

Jailed Subrata Roy gets office to negotiate hotel sales.  Full Article 

Rupee Dips

Rupee Dips

Rupee posts biggest weekly loss since record lows in August.  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Factory Lockout

Factory Lockout

Pfizer says threats to managers force staff lockout at Mumbai factory .  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage