Obviously, it is something that has to be done (cleaning up of bad loans) and there are no two ways about it,” said Bhattacharya. Bankers are also keen on a stressed debt fund that can help bridge immediate funding needs to a struggling company. India’s 40 publicly traded banks are now holding Rs.5.8 trillion in bad loans. This will help slow any further build-up of bad loans while also providing relief to companies whose operations have been stymied by excessive debt. Of these, finding a way to bring down the level of stressed assets on the bank will undoubtedly receive the most attention, she said.

Source: Mint June 12, 2016 18:45 UTC