- Sunil Mehta, the chairman of a bankers’ panel working on faster resolution of stressed assets in public sector banks has informed that an asset management company (AMC) for resolving large bad loans has been formed and will be called as “Sashakt India Asset Management Ltd.”
- The government in July has proposed a five-pronged strategy under Project Sashakt to to tackle stress in the banking sector, and had formed a panel led by Sunil Mehta (Executive Chairman of PNB).
- Under the project, the committee had to float an AMC and an AIF to resolve non-performing assets (NPAs) over Rs 500 crore.
- ICA (inter creditor agreement) is a platform for banks and financial institutions to come together and take concerted efforts towards resolving bad loans under Rs 500 crore.
Points to remember:
- Name of the AMC.
- Full form of ICA and ICA is for bad loans less than Rs 500 Crore