IBA considering proposal to set up AMC and AIF, takeover NPAs from PSBs

The coronavirus pandemic is expected to result in a rise in non-performing assets (NPAs) despite relief measures

Indian Bank’s Association is considering a proposal from Sashakt panel for setting up an asset management company and Alternate Investment Fund (AIF) to acquire bad loans from banks with aim to turnaround those assets to protect and enhance value.

Public sector bank executive said the structure advised by Sashakt panel is being considered for an establishing vehicle, dubbed as bad bank, to park toxic assets in back in focus.

The coronavirus pandemic, which is expected to result in a rise in non-performing assets (NPAs) despite relief measures such as allowing a 90-day moratorium on retail loans and relaxing working capital