No 'bad bank', govt has a 5-point strategy to deal with NPAs: Piyush Goyal

The committee was given a fortnight to submit its report on the feasibility of setting up an ARC/AMC for faster resolution of bad loans

Independent asset management companies (AMCs) and steering committees will be set up for faster resolution of bad loans in the banking system, Finance Minister Piyush Goyal said as the government accepted five-pronged plan of the Sunil Mehta-panel.

The panel under the chairmanship of PNB non-executive chairman Sunil Mehta has recommended an asset management company/alternative investment fund (AIF)-led resolution approach to deal with NPA cases of more than Rs 5 billion, Goyal told reporters here.

There are about 200 accounts, each of which owes more than Rs 5 billion to banks. Their total exposure is about Rs 3.1 trillion.

Giving details, Goyal said