Bad loans, currently at Rs8.82 trillion, are expected to rise as the new rules don’t give banks much discretion. The rules, released on 12 February, stipulate that starting 1 March, lenders must implement a resolution plan within 180 days for defaulted loan accounts above Rs2,000 crore. They also mandate banks to report defaults weekly to RBI, even if loan payments are delayed by a day. Bad loans, currently at Rs8.82 trillion, are expected to go up as the new rules don’t give lenders much discretion. What is the situation on bad loan resolution?

Source: Mint April 23, 2018 04:07 UTC