Finance minister to meet heads of banks to discuss NPA resolution structure
The assembly is more likely to formalise the inter-creditor settlement construction as urged within the five-pronged ‘Mission Sashakat’, sources mentioned.
The assembly has been organised by Indian Banks Affiliation (IBA) and inter creditor settlement could be the framework underneath which the consortium would take up NPA circumstances.
The framework will authorise the lead financial institution to implement a decision plan in 180 days and the chief would then put together a decision plan together with empanelling turnaround specialists and different business specialists for operation turnaround of the belongings inside RBI’s stipulated timeframe of 180 days.
As a part of the framework unbiased screening committee of eminent personalities could be appointed by IBA to validate due course of inside most 30 days and the decision would proceed if lenders holding 66 per cent of debt give their nod according to the NCLT course of.
As soon as the decision plan is authorized, the lead financial institution could be accountable to execute the plan.
Whereas accepting Sunil Mehta Committee advice earlier this week, the finance minister had mentioned banks would arrange unbiased asset administration corporations (AMCs) and steering committees for quicker decision of unhealthy loans.
A panel, headed by PNB non-executive chairman Sunil Mehta, really helpful an asset administration firm/various funding fund (AIF)-led decision method underneath the five-pronged technique to take care of NPA circumstances of greater than Rs 500 crore.
There are about 200 accounts, every of which owes greater than Rs 500 crore to banks. Their complete publicity is about Rs three.1 lakh crore.
Giving particulars, Goyal had mentioned underneath this method, unbiased asset administration corporations could be arrange. AIF would elevate funds from institutional traders.
The AMC, to be arrange underneath AIF framework, will turn into a market maker and thereby making certain wholesome competitors, truthful worth and money restoration, the minister had mentioned.