Don’t miss the latest developments in business and finance.

RBI outlines plans on bank bad loan resolution

Image
Reuters MUMBAI
Last Updated : Jun 13 2017 | 9:07 PM IST

MUMBAI (Reuters) - The Reserve Bank of India outlined on Tuesday a plan to expedite the resolution of the $150 billion bad debt problem plaguing the country's banks by focusing first on some of the large stressed accounts held by lenders.

The RBI, in a statement, said it has identified 12 accounts that constitute about 25 percent of the overall gross non-performing assets in the system and directed lenders to begin insolvency proceedings around these accounts immediately.

The move comes about a month after the Indian government changed rules giving the central bank greater power to deal with bad loans.

(Reporting by Suvashree Choudhury and Euan Rocha; Editing by Rafael Nam)

Also Read

First Published: Jun 13 2017 | 9:01 PM IST

Next Story