RBI acts to counter bad loans
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)
- Tweet this
- Share this
- Digg this
- Fears for tough penalties grow as India cleans up business
- India warns Pakistan of more pain in Kashmir fighting
- Giving pricey hepatitis drug to prisoners may be financially wise
- No fear of deflation: Indian consumers respond to softer oil, food prices
- New Jerusalem find may shed light on Jewish revolt against Romans
An unprecedented ban on DLF, India's largest property developer, from tapping capital markets has fuelled expectations of tougher penalties ahead, as the country's regulators feel emboldened to take on even companies long sheltered by political connections. Full Article