Arvind Subramanian, the Finance Ministry’s chief economic adviser, said that delaying a clean-up would further reduce private-sector investment and make the problem worse for Asia’s third-largest economy. “There is very much urgency,” Mr. Subramanian told a news briefing in New Delhi, adding that the government was in touch with the RBI on the matter. Mr. Subramanian has proposed setting up a so-called Public Asset Rehabilitation Agency that would handle the biggest, toughest problem loans and take politically difficult decisions to reduce debt. Stressed loansBanks had record stressed loans of $133 billion, or 12.34% of their total loans, as of September. The public is already on the hook, it is a matter of how quickly you do it.”

Source: The Hindu February 22, 2017 17:23 UTC