Mumbai: In a bid to ease the stress in the banking system on account of rising non performing loans, the government is planning to launch a fund that would invest in stressed assets.
“We are working towards creating a stress assets fund. We need an efficient resolution and recovery process for banks for many of their stress assets,” said Jayant Sinha, minister of state for finance, while addressing reporters on the sidelines of an event organised by credit rating agency CRISIL in Mumbai.
While noting that the non-performing assets (NPA) have touched Rs 8 lakh crore, Mr Sinha said the government is working towards efficient resolution and recovery process through which non-performing loans could be brought down to sustainable levels.
He further informed that the government has already set up a committee that is working on it. “We expect a variety of funds — stressed debt fund, special situations fund, and NIIF (National Investment and Infrastructure Fund) — to then participate in equity investment in these stressed assets,”MoS finance said.
“There are many other players looking into stress assets. We will have a significant stressed assets fund. We expect there will be a vibrant market to be able to take these assets that are in need of equity capital right now and to bring them back to a high-quality operating performance. We are in the process of working that out,” Mr Sinha added.
