RBI gets tough with problematic borrowers:
“India's economy
has been dogged by rising bad debts over recent years, with numerous industrial
companies unable to repay creditors. Lenders have faced a rising tide of
restructured and non-performing assets, which account for more than 10 per cent
of loans across the banking system.
On Monday, the RBI
published rules proposing a new "strategic debt restructuring
scheme", which allows banks to impose tough conditions on distressed
companies that need to renegotiate existing loan agreements.”
Related:
http://www.economist.com/news/finance-and-economics/21653667-economys-prospects-rest-broken-banks-are-only-slowly-being