Bad Bank will operate with the help of private and public sector banks. It is not yet clear what the initial capital of the company will be.
The Government is planning to bring under-performing assets of Rs one lakh crore, “Bad banki’n. The loan will be disbursed under an asset restructuring company, which will be started with the help of commercial banks.
It is reported that over Rs 500 crore in 68-70 accounts will be transferred to the company. There will be no government involvement in the proposed bad bank. Finance Secretary Debashish Panda said in an interview that there would be no funding or management control.
Bad Bank will operate with the help of private and public sector banks. It is not yet clear what the initial capital of the company will be.
Finance Minister Nirmala Sitharaman has announced in the budget that she will set up an asset restructuring company. Bad Bank is envisioned as an institution that seeks to address non-performing assets (NPAs) in the banking sector.
Loans worth Rs 2.25 lakh crore to be shifted to ‘Bad Bank’
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