Banking institutions have actually set up Rs 46,690 crore of bad loans available for sale up to now this financial, which will be much less than Rs 1.30 lakh crore set up in the last fiscal. The emergence of other appropriate avenues such as inter-creditor agreement and Insolvency and Bankruptcy Code have actually resulted in the autumn.
The vulture that is global circling Indian skies to grab soured loans have found the stack dwindling for them.
Domestic banking institutions are reducing the purchase of bad loans to asset reconstruction companies (ARCs) as other avenues such as for example Insolvency and Bankruptcy Code and hurdles that are legal increased.
Purchase of non-performing assets to ARCs by banking institutions declined from Rs 67,830 crore during 2017-18, to Rs 57,508 crore in 2018-19, based on an ET report.