Transfer NPAs to bad bank at book value, says Parliamentary panel

The panel urged the Reserve Bank of India to clearly define every step of the procedure to remove any ambiguity or discretion from the banks' side

A parliamentary panel has recommended that the stressed assets of banks must be transferred to the proposed bad bank at book value as the more time such assets are left on the lenders’ balance sheet the more is the prospect of their value eroding.
 
The Parliamentary Standing Committee on Finance said the bad bank, which will be owned by both public and private sector banks, will help in saving time and avoiding delays in resolving soured loans through consolidated decision making.
 
The Union Budget 2021-22 proposed setting up an asset reconstruction and asset management company led by banks