MUMBAI: Public sector banks mired in bad loans may have got a new lifeline to resolve large NPAs. A bankers’ panel headed by Punjab National Bank chairman Sunil Mehta on Thursday announced that an asset management company (AMC) called Sashakt India Asset Management has been incorporated for the purpose of resolving bad loans above Rs 500 crore.
There are an estimated 200 large NPA accounts in various PSU banks with a total exposure of `3 lakh crore. “We are in touch with many domestic and global investors (to fund the AMC). There is great interest in the stressed assets in the Indian market. Quality of assets is exceptional,” he said, adding the AMC doesn’t need more than Rs 30-40 crore investment.
The government in July proposed a five-pronged strategy under Project Sashakt to tackle stress in the banking sector. For dud loans under Rs 500 crore, Project Sashakt has inter creditor agreement (ICA) for which 33 banks have signed up so far. ICA is a platform for banks and financial institutions to come together and take concerted efforts towards resolving low-value bad loans.
According to the project, NPAs up to Rs 50 crore will be managed at bank level, with a deadline of 90 days. Dud loans of Rs 51-500 crore will either take the ICA route with a deadline of 180 days, or be referred to NCLT. The AMC will take care of NPA accounts above Rs 500 crore.The Mehta committee comprises representatives of all major banks, including SBI.