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Banks shares edge higher on RBI action on defaulters

Reuters  |  MUMBAI 

(Reuters) - edged higher on Wednesday after the central said it had identified 12 of the largest loan defaulters and will order lenders to start bankruptcy proceedings against them, without disclosing any account names.

Top lender State of was trading up 0.2 percent by 0356 GMT, having risen as much as 0.7 percent, while Punjab National was 0.4 percent up.

While taking defaulters to bankruptcy proceedings will speed up resolution of bad loans, it may also require the capital-starved state-run banking sector to make higher provisioning, analysts said.

($1 = 64.3300 Indian rupees)

(Reporting by Devidutta Tripathy; Editing by Rafael Nam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)