Alacrity in structure a must for takeover of bad loans: Mehta of Yes Bank

Urges three-pillared base consisting of ARCs, AMCs and AIFs to attract investors into this space, without which process could lose credibility

The finance ministry and banks must work with alacrity to form the framework — asset restructuring company, asset management company and alternate investment funds (AIF) — to attract investors for takeover and resolution of stressed loans. Else, the process, which has been talked about since 2018, will run the risk of losing credibility, according to Sunil Mehta, chairman, Yes Bank.

Mehta, head of the panel that had proposed Project Sashakt which crafted the road-map in 2018, said the government should choose one agency to anchor the formation and monitoring and be held accountable. The panel had dealt with issues and the