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FM Goyal announces committee to set up Asset Reconstruction Co

Press Trust of India  |  Mumbai 

today announced setting up of a committee to give recommendations in two weeks on formation of an for faster resolution of stressed accounts.

After meeting the heads of state-owned banks, said the government "stands solidly behind each of the 21 public sector banks (PSBs)".

The committee under Sunil Mehta, of PNB, will make recommendations in two weeks on setting up of an or Asset Management Company for faster resolution of stressed accounts, he told reporters here.

Most of the stressed assets have been identified that could fit into the ARC or AMC structure, he said.

Also, banks will consider having oversight committees with external experts to help faster decision making and resolving stressed accounts in a transparent and speedy manner.

said discussions during the meeting focused on credit flow and banks devising mechanism to ensure credit flow to good borrowers should not face difficulties.

Risks need to be mitigated to support economy, he said, adding that all bankers wished to set up a mechanism to enable faster resolution of stressed accounts.

He also said that all vacant positions of PSB heads will be filled in the next 30 days.

Suggestions about strengthening governance process and honest recognition of NPAs or bad loans were discussed at the meeting, he said.

He assured that processes will be streamlined and customer interest protected.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 08 2018. 17:40 IST