Lenders discuss NPA resolution with RBI

Lenders saddled with large stressed accounts began discussions with the Reserve Bank of India (RBI) on the resolution process.

A senior banker said preliminary discussions were part of the RBI’s interaction with stakeholders for resolution of big stressed accounts.

While there is a sense of urgency, but it’s too early to set timelines for the resolution. Banks have flagged two aspects. One is about sector-specific strategy as problems and issues are unique. The focus is on steel, power and construction sectors. Second aspect is absorbing haircuts for restructured cases. Most public sector banks, which hold most of the bad loans, are reeling