Finance Minister Piyush Goyal throws light on the AMC report by PSU bank, says the committee has set a 5 pronged strategy towards resolution of stressed assets, ‘SASHAKT’ that stands for strengthening and the whole objective was to strengthen the credit capacity, credit culture and portfolio of the public sector banks.
Piyush Goyal further elaborates the guidelines of ‘SASHAKT’ which has been suggested as the best solution by the commitee set up to adress the crisis in Indian banks. Goyal said, the panel has recommended the creation of an AMC under the framework of an alternative investment fund (AIF) to deal with NPA cases of more than 500 crore rupees. Finance Minister said, government will not intervene in the resolution process which will be entirely led by banks.
There are about 200 such accounts, each owing more than 500 crore rupees to banks, with a total exposure of about 3.1 lakh crore rupees.
Goyal said, Sunil Mehta panel presented project ‘Sashakt’ and has recommended a five pronged strategy to deal with stressed assets. He said, the plan focuses on turning around assets in a manner that will create additional jobs by reviving businesses and prevent job losses from foreclosures.