New Delhi: To deal with non-performing assets (NPAs) of banks, the Centre on Monday unveiled “SASHAKT” which proposes to set up independent Asset Management Companies (AMC) to bid for stressed assets with loans over Rs 500 crore.
The AMC will also bid for assets taken by National Company Law Tribunal (NCLT) for resolution.
Union finance minister Piyush Goyal said that the plan focuses on turning around assets in a manner that will not lead to jobs losses.
“The government will not intervene in the resolution process which would be entirely led by banks,” Mr Goyal said.
As per the report submitted by committee on Resolution of Stresses Assets, different approaches have been outlined for stressed loans upto '50 crore, between '50 to '500 crore and over '500 crore.
For SME sector with loans upto '50 crore, bank officials will be given 90 days for a resolution. The bank officials will look how to turnaround the company and their capital requirement.
Since, resolution of these assets will be mostly under a single bank control, the committee has recommended an overall approach which would be customised at individual bank level. The sector has Rs 2.1 lakh crore exposure.
