Big cracks surface among banks over inter-creditor agreement pinpricks

IBA's legal advisor to hold bankers meet on Sept 7

All’s not well among banks despite a public show of solidarity on the stated merits of the freshly minted inter-creditor agreement (ICA) to clean up the dud-loan mess which has topped Rs 10 trillion at end of March 2018. 

The heartburn is over six sensitive issues: lack of a well-defined exit clause from the mechanism; status of third-party and current security-sharing terms; an option to stay out of a fresh funding scheme to a beleaguered borrower; a tweak of buyout valuations to on-board the concerns of lead-bankers’ and dissenters’; the scope of the indemnity cover given to the lead-bank in