MUMBAI: The Reserve Bank of India (RBI) Tuesday sought to address potentially about a fourth of the Rs 10 lakh-crore non-performing assets (NPAs) on the books of local lenders, mandating that a dozen such accounts be taken to the bankruptcy courts. But today's notification shows that the regulator has kept away from specific cases, providing instead broad and directional guidelines to the lenders.The Indian banking system is saddled with sticky loans. Bad loans at state-run banks have increased by more than Rs 1 lakh crore since April 2016 to Rs 6 lakh crore as of December 31. “Earlier, banks could not move fast due to bureaucratic processes. Banks should ensure that possible losses arising out of this should reflect in their balance sheets.

Source: Economic Times June 13, 2017 15:20 UTC