'Bad bank' back on table: Piyush Goyal says panel will decide on ARCs

Finance Minister announces panel to consider formation of ARC for quicker resolution of stressed accounts

The proposal on transferring non-performing assets (NPAs) of public sector banks (PSBs) to special purpose vehicles — asset reconstruction companies or asset management firms — is back on the agenda.

A panel headed by Sunil Mehta, non-executive chairman, Punjab National Bank, would give recommendations in two weeks on forming asset reconstruction companies/asset management companies (ARCs/AMCs) to resolve the problem, Union Finance Minister Piyush Goyal told reporters after discussions with public sector bank heads in Mumbai.

The panel will study whether such a suggestion is good for Indian banking. If it was found useful, it would suggest ways of setting up