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

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

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