Banks, Financial Institutions Sign Agreement To Speed Up Resolution of Bad Loans

Nearly two dozen Banks and Financial Institutions, including SBI and LIC, have signed the inter-creditor agreement (ICA) framework to speed up the resolution of stressed assets which are under the 500-crore rupee bracket. The framework is part of the Project SASHAKT, the report on bad bank drafted and submitted by the committee headed by Non-executive Chairman of PNB, Sunil Mehta.
The objective of ICA is to resolve stressed assets fast, and will primarily focus on NPAs in the 50 crore to 500 crore bracket. The framework will deal separately with stressed assets of 500 to 2,000 crores or more. The agreement will also enable lenders to move expeditiously and protects their interest.
Source- The Moneycontrol