It was proposed by a panel led by PNB chairman Sunil Mehta to address the bad loansproblem in India’s banking sector Public sector banks (PSBs) will need an additional capital of Rs 1.1-1.3 trillion over thenext two years to implement a five-point strategy to tackle bad loans, a committeereport on project ‘Sashakt’ has recommended.
Project Sashakt was proposed by a panel led by PNB chairman Sunil Mehta. Bad loans ofup to ₹50 crore will be managed at the bank level, with a deadline of 90 days.
For bad loans of ₹50-500 crore, banks will enter an inter-creditor agreement,authorizing the lead bank to implement a resolution plan in 180 days, or refer the assetto NCLT.
For loans above ₹500 crore, the panel recommendedan independent AMC, supportedby institutional funding through the AIF. The idea is to help consolidate stressed assets.
BPCS Notes brings Prelims and Mains programs for BPCS Prelims and BPCS Mains Exam preparation. Various Programs initiated by BPCS Notes are as follows:-