Business Standard
Shishir Asthana, Mumbai, August 31, 2012The Mahapatra Committee recommendations could erode a large portion of public sector banks' net worth
Public sector banks are in trouble and have betrayed this fact by objecting to the recommendations made by Reserve Bank of India’s committee on loan restructuring. The Mahapatra Committee set up by the central bank had suggested the abolition of regulatory forbearance while recasting debt after two years. If implemented, this would mean that all restructured loans will have to be classified as NPAs (non-performing assets).
Credit rating agency Crisil has revised its loan recast figure to Rs 3.25 lakh crore for 2012-13 which is a sharp rise from Rs 2.18 lakh crore for 2011-12. Nearly 80 per cent of these loans are in the books of public sector banks.
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9/02/2012
Public sector banks: Troubles continue | The Galactic Free Press
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