Banks working to speed up ICA process for resolution of stressed loans: IBA

Indian Banks' Association chief executive Sunil Mehta said a draft on the same has been already given to banks for their suggestions

Banks are working together in removing hurdles and speeding up the process of execution of inter-creditor agreement (ICA) in order to ensure faster resolution of bad assets amid Covid-19 pandemic, Indian Banks' Association chief executive Sunil Mehta said.

He said a draft on the same has been already given to banks for their suggestions. As per the RBI, in cases where a resolution has to be implemented, all lenders will have to enter ICA within a review period.

The ICA shall provide that any decision agreed by lenders representing 75 per cent by value of total outstanding credit facilities (fund-based as well