Agency with muscle can fix bad loans

How bad bank will be capitalised, ask experts

A centralised Public Sector Asset Rehabilitation Agency (PARA) should be created to take charge of the largest and most difficult stressed loans.
 
The agency, suggested the Economic Survey, could be allowed to take politically tough decisions and reduce non-performing assets and restructured loans.
 
The economy has been grappling to solve its twin balance sheet (TBS) problem — overleveraged companies and bad-loan-encumbered banks — a legacy of the boom years around the global financial crisis. The Survey said “decisive resolution is urgently needed before the TBS problem becomes a serious drag on growth”.
 
Private asset reconstruction companies (ARCs)