NPA Resolution Without Burdening Taxpayers

The news of Tata Steel acquiring Bhushan Steel has come as a relief to the miserable banking sector of the country, reeling as it does under the pressure of non-performing assets or irrecoverable (bad) loans. A strong private company buying up a weak or sick one saves the taxpayer from being burdened with the surplus […]


RBI relaxes 26% debt-equity conversion cap for ARCs

Mumbai: In a major boost to the asset reconstruction companies (ARCs) the Reserve Bank today relaxed norms capping their shareholdings at 26 per cent in the borrower firm under reconstruction, provided their net-owned funds are maintained at Rs 100 crore. Earlier ARCs could convert a portion of the debt into equity of the borrower company […]


Can ARC Defuse Bank NPA Bomb?

[dropcap]I[/dropcap]ndia’s is that rare major economy, grown to a mere $2 trillion, already out of control in a vital aspect. It is in considerable trouble with regard to how it manages — or, in truth, fails to cope with — its delinquent major borrowers. It is an existential irony: The small debtor, petty businessman, farmer, […]