Enthused by speedy recovery of loans worth $2.5 billion by three lenders, including ICICI Bank, within days of a mega $13-billion Essar deal, banks are now looking at the resolution of stressed assets totalling about 1.50 lakh crore in the coming months.
Having broadly completed the first two stages of ‘recognising’ the stressed assets and of ‘reserving’ or provisioning for such loans, the banks are now betting big on the ‘resolution’ part of what is being billed by some top bankers as the ‘3Rs’ formula to recover their dues.
With the Essar deal coming in as a catalyst, the banks are prioritising the process by focussing on helping in sale of businesses by corporate borrowers and by converting debt into equity at companies that generate operating profits, according to bankers.
[Source:-The Hindu]
