Union government to set up committee on Asset Reconstruction Company
Finance Minister Piyush Goyal announced setting up of a
committee to give recommendations in two weeks on formation of an Asset
Reconstruction Company for (ARC) faster resolution of stressed accounts
The committee under Sunil Mehta will make recommendations in
two weeks on setting up of an Asset Reconstruction Company (ARC) or Asset
Management Company (AMC) for faster resolution of stressed accounts.
The government “stands solidly behind each of the 21 public sector banks (PSBs)”.
He is presently the non-executive chairman of Punjab
National Bank (PNB),
Most of the stressed assets have been identified that could
fit into the ARC or AMC structure.
Also, banks will consider having oversight committees with
external experts to help faster decision making and resolving stressed accounts
in a transparent and speedy manner.
All bankers wished to set up a mechanism to enable faster
resolution of stressed accounts.
All vacant positions of PSB heads will be filled in the next
Suggestions about strengthening governance process and
honest recognition of non-performing assets (NPAs) or bad loans were discussed
at the meeting.