Banks will be under pressure to close the transactions soon and this could lead to under-pricing of loans
The government has empowered the Reserve Bank of India (RBI) to help resolve the issue of non-performing assets (NPAs). The RBI has also since directed the banks that the joint lenders’ forums (JLFs) should implement the corrective action plans (CAPs) within the prescribed timelines. So the big question is—will the bad loans now get resolved more efficiently than was the case until a few weeks ago? Let us look at the issue closely.