SBI to launch a new company to handle bad debt
Posted on: 01/Jun/2016 2:42:01 PM
The Government is actively considering the possibility of implementing the program and provide advice to the SBI.
Speaking at an an event organised by credit rating agency CRISIL in Mumbai, Jayant Sinha who is the Minister of State for Finance said: Now rules are being drawn up to set up a separate panel to handle the banks bad debts. SBI banks are saddled with sour loans of around Rs 8080794000000.
The minister said the government was working on several options, including one involving SBI, and that details of such a fund were still being finalised. According to a report, an arm of the SBI may team up with global private equity major Warburg Pincus and two sovereign wealth funds from West Asia to launch USD 300 Crores distressed assets fund.
The government had first floated the idea of a bad bank last year, but RBI governor Raghuram Rajan had questioned its efficacy in a system where public lenders held the bulk of bad loans.
