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FM Sitharaman's bank mergers step will make resolution process easier

Often the resolution process gets stuck with many smaller players not agreeing with the majority view

Sitharaman
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FM Sitharaman with Finance secretary Rajiv Kumar during a press conference to announce merger of various public sector banks, in New Delhi | PTI

Subrata Panda Mumbai
With finance minister Nirmala Sitharaman announcing merger of smaller public sector banks with larger ones, experts believe it will be positive step. 

It will build a consensus among lenders that are a part of the committee of creditors (CoC) of companies undergoing resolution via the insolvency and bankruptcy code (IBC) or via the inter-creditor agreement in accordance with the June 7 circular of the Reserve Bank of India (RBI).

In the current form, with so many lenders being a part of the CoC, often the resolution process gets stuck with many smaller players not agreeing with the majority view. In

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First Published: Aug 31 2019 | 12:17 AM IST

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