NEW DELHI: Indian government is pushing state-owned steel, power and shipping firms to take over assets of private companies that have defaulted on loans, but faces resistance from them, leaving it scrambling to clear a $135 billion pile of stressed loans from banks’ books.
Over the past two years, Prime Minister Narendra Modi’s government has pushed banks to recognise non-performing assets, make adequate provisions for them and try to raise capital from outside to bolster their balance sheets.
But, facing an end-March deadline to declare all bad loans on their books, the mostly state-owned banks have struggled to do any of that.
The problem loans are limiting their ability to lend, weighing on India’s growth prospects….
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