The new regulations are viewed by some as giving upper hand to lenders who are reeling under Rs 8 lakh crore of non- performing assets (NPAs) or bad loans. PSU banks alone account for about 75 per cent of the total bad loans. But then DRTs began to be less effective as envisaged, the minister noted, which led to the new law. Calling for speedy and time-bound resolution of bad loans which has become a major regulatory overhang, he expressed the hope that the mandated timelines will be adhered to so that implementation is effective. These accounts have an exposure of more than Rs 5,000 crore each, with 60 per cent or more classified as bad loans by banks as of March 2016.

Source: dna August 19, 2017 12:22 UTC