Union Finance Minister, Arun Jaitley, at a press conference, after the Quarterly Review Meeting of the Chairman and Managing Directors of Public Sector Banks (PSBs) andmore-inPublic sector banks seeking fresh capital from the Centre would have to commit to reform their own operations and take immediate steps to improve their balance sheet position, the government said on Friday. We are planning in the process of signing memorandums of understanding with public sector banks which seek capitalisation, specific provisions that will be incorporated,” he said. While the resolution of NPAs is an ongoing process, the government wants to speed it up and see resolutions of specific bad loans. A separate clause 35B allows the RBI to issue specific directions, including the formation of oversight committees (OCs) to resolve bad loans. Currently, the OC mechanism functions only in relation to the scheme for sustainable structuring of stressed assets (S4A) for banks.

Source: The Hindu May 05, 2017 15:45 UTC