4 min read.Updated: 16 Aug 2017, 03:06 AM ISTHarsh Vora
A national asset management agency of the kind South Korea and Malaysia have deployed in the past would be a pragmatic way of dealing with NPAs
In the aftermath of the global financial crisis, many Indian banks pursued an aggressive lending strategy, wagering on a miraculous revival of the economy. As much of this lending was done without conducting adequate credit appraisal or post-disbursal monitoring, their asset quality quickly deteriorated. Growth slowdown in heavily indebted sectors such as infrastructure, metals, telecom, and textiles only exacerbated the problem.