The guidelines will be applicable to all the stressed sectors like the construction sector, real estate sector, banking sector, and so on. In order to provide a breather to the construction sector, the Reserve Bank of India (RBI) is likely to come out with detailed norms for one-time settlement of loans in line with the Cabinet decision. Banks' exposure to the construction sector stands at over Rs 3 lakh crore, and 45% or Rs 1.35 lakh crore of the loans are under stress. Overall, gross NPAs of the public sector banks have surged from 5.43% (Rs 2.67 lakh crore) in 2014-15 to 9.32% (Rs 4.76 lakh crore) in 2015-16. The construction sector contributes 8% of the GDP and provides employment to some 40 million people in the country.

Source: dna November 02, 2016 10:35 UTC