TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Opportunities for Youth in a Changing India

    Opportunities for Youth in a Changing India: Global Investment Expert Manu Seth Shares Insights

    Decomposed Body of Pakistani Actress Humaira Asghar Found in Karachi Flat

    Decomposed Body of Pakistani Actress Humaira Asghar Found in Karachi Flat After Weeks

    Foreign Investment, Innovation, and Confidence Are Making India a Global Leader: Investment Advisor Manu Seth

    Foreign Investment, Innovation, and Confidence Are Making India a Global Leader: Investment Advisor Manu Seth

    Nimisha Priya set to be executed on July 16 in Yemen

    Indian Nurse Faces Execution in Yemen on July 16; Is There Still Hope for Nimisha Priya?

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Opportunities for Youth in a Changing India

    Opportunities for Youth in a Changing India: Global Investment Expert Manu Seth Shares Insights

    Simple Legal Steps to Protect Your Brand in India

    Simple Legal Steps to Protect Your Brand in India

    Indian-Origin Tesla CFO Vaibhav Taneja Appointed Treasurer of Elon Musk’s 'America Party'

    Indian-Origin Tesla CFO Vaibhav Taneja Selected Treasurer of Elon Musk’s ‘America Party’

    India’s Forex Reserves Surge Past $700 Billion

    India’s Forex Reserves Surge Past $700 Billion, Close to All-Time Record

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Decoy That Changed the Game: How India's AI-Powered X-Guard Neutralised Pakistani Air Threats

    Rafale Decoy Confused Pakistan Jets During Operation Sindoor, Claims US Veteran Pilot

    India Successfully Tests Indigenous Anti-Submarine Rocket ERASR

    India Successfully Tests Indigenous Anti-Submarine Rocket ERASR, Boosting Navy’s Underwater Capabilities

    Gun-Making Racket Exposed in Aligarh: UP STF Arrests 3

    Gun-Making Factory Busted in Aligarh: UP STF Arrests 3

    Major Arms Seizure in Manipur Hill Districts

    Amid Ongoing Tensions, Security Operation Yields Major Arms Seizure in Manipur Hill Districts

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    We Share Borders With Tibet, Not China”: Khandu’s Sharp Reply

    Khandu’s Bold Message to China: Arunachal Belongs to India, Border Was With Tibet

    Pakistan on edge as coup rumors spark fear of military takeover

    Coup Season in Pakistan? Munir Plots Move as Zardari Trembles, Sharif Watches Helplessly

    26 Global Awards and Counting: Modi Receives Brazil’s Civilian Honour

    PM Modi Honoured with Brazil’s Top Civilian Award, 26th Global Recognition

    Five-Nation Tour: Modi to Visit Namibia, First Indian PM in 30 Years

    Five-Nation Tour: Modi to Visit Namibia, First Indian PM in 30 Years to Boost Mineral, Energy, and Digital Ties

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Tirumala Tirupati Devasthanams Suspends Senior Official for Attending Church Services

    Tirumala Tirupati Devasthanams Suspends Senior Official for Attending Church Services

    The Beginning of Devotion: History of the First Kanwar Yatra

    The Beginning of Devotion: History of the First Kanwar Yatra 

    Kanwar Yatra: UP Gears Up With Full-Scale Arrangements

    Kanwar Yatra: Four Devotional Paths, One Divine Destination

    char dham yatra suspended due to bad weather

    Uttarakhand Suspends Char Dham Yatra Due to Adverse Weather, Prioritizes Pilgrim Safety

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Try These 6 High-Protein Vrat-Friendly Foods to Stay Energised

    Fasting This Sawan 2025? Try These 6 High-Protein Vrat-Friendly Foods to Stay Energised

    say no to alcohol for 6 months

    How Quitting Alcohol for 6 Months Can Transform Your Health

    Mental Wellness Rituals to Stay Calm, Focused, and Balanced

    Mental Wellness Rituals to Stay Calm, Focused, and Balanced

    India's Tour of Bangladesh Likely Postponed Amid Political Unrest

    India’s Tour of Bangladesh Likely Postponed Amid Political Unrest

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Opportunities for Youth in a Changing India

    Opportunities for Youth in a Changing India: Global Investment Expert Manu Seth Shares Insights

    Decomposed Body of Pakistani Actress Humaira Asghar Found in Karachi Flat

    Decomposed Body of Pakistani Actress Humaira Asghar Found in Karachi Flat After Weeks

    Foreign Investment, Innovation, and Confidence Are Making India a Global Leader: Investment Advisor Manu Seth

    Foreign Investment, Innovation, and Confidence Are Making India a Global Leader: Investment Advisor Manu Seth

    Nimisha Priya set to be executed on July 16 in Yemen

    Indian Nurse Faces Execution in Yemen on July 16; Is There Still Hope for Nimisha Priya?

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Opportunities for Youth in a Changing India

    Opportunities for Youth in a Changing India: Global Investment Expert Manu Seth Shares Insights

    Simple Legal Steps to Protect Your Brand in India

    Simple Legal Steps to Protect Your Brand in India

    Indian-Origin Tesla CFO Vaibhav Taneja Appointed Treasurer of Elon Musk’s 'America Party'

    Indian-Origin Tesla CFO Vaibhav Taneja Selected Treasurer of Elon Musk’s ‘America Party’

    India’s Forex Reserves Surge Past $700 Billion

    India’s Forex Reserves Surge Past $700 Billion, Close to All-Time Record

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Decoy That Changed the Game: How India's AI-Powered X-Guard Neutralised Pakistani Air Threats

    Rafale Decoy Confused Pakistan Jets During Operation Sindoor, Claims US Veteran Pilot

    India Successfully Tests Indigenous Anti-Submarine Rocket ERASR

    India Successfully Tests Indigenous Anti-Submarine Rocket ERASR, Boosting Navy’s Underwater Capabilities

    Gun-Making Racket Exposed in Aligarh: UP STF Arrests 3

    Gun-Making Factory Busted in Aligarh: UP STF Arrests 3

    Major Arms Seizure in Manipur Hill Districts

    Amid Ongoing Tensions, Security Operation Yields Major Arms Seizure in Manipur Hill Districts

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    We Share Borders With Tibet, Not China”: Khandu’s Sharp Reply

    Khandu’s Bold Message to China: Arunachal Belongs to India, Border Was With Tibet

    Pakistan on edge as coup rumors spark fear of military takeover

    Coup Season in Pakistan? Munir Plots Move as Zardari Trembles, Sharif Watches Helplessly

    26 Global Awards and Counting: Modi Receives Brazil’s Civilian Honour

    PM Modi Honoured with Brazil’s Top Civilian Award, 26th Global Recognition

    Five-Nation Tour: Modi to Visit Namibia, First Indian PM in 30 Years

    Five-Nation Tour: Modi to Visit Namibia, First Indian PM in 30 Years to Boost Mineral, Energy, and Digital Ties

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Tirumala Tirupati Devasthanams Suspends Senior Official for Attending Church Services

    Tirumala Tirupati Devasthanams Suspends Senior Official for Attending Church Services

    The Beginning of Devotion: History of the First Kanwar Yatra

    The Beginning of Devotion: History of the First Kanwar Yatra 

    Kanwar Yatra: UP Gears Up With Full-Scale Arrangements

    Kanwar Yatra: Four Devotional Paths, One Divine Destination

    char dham yatra suspended due to bad weather

    Uttarakhand Suspends Char Dham Yatra Due to Adverse Weather, Prioritizes Pilgrim Safety

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Try These 6 High-Protein Vrat-Friendly Foods to Stay Energised

    Fasting This Sawan 2025? Try These 6 High-Protein Vrat-Friendly Foods to Stay Energised

    say no to alcohol for 6 months

    How Quitting Alcohol for 6 Months Can Transform Your Health

    Mental Wellness Rituals to Stay Calm, Focused, and Balanced

    Mental Wellness Rituals to Stay Calm, Focused, and Balanced

    India's Tour of Bangladesh Likely Postponed Amid Political Unrest

    India’s Tour of Bangladesh Likely Postponed Amid Political Unrest

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

Modi government approves proposal to set up Asset Reconstruction Company to resolve NPAs

Amit Agrahari by Amit Agrahari
3 July 2018
in Economy
npas, asset reconstruction, piyush goyal,

PC: Punjab Kesari

Share on FacebookShare on X

The government has come up with a comprehensive plan to resolve the Non Performing Assets (NPA) crisis of loans of small amounts. The process for the resolution of NPAs will get faster as the government will get an Asset Reconstruction Company (ARC) on board to solve this problem. The ARC is expected to primarily deal with Micro, Small and Medium Enterprises’ (MSMEs) NPA problem, for which there are no takers. Acting Finance Minister Piyush Goyal had announced a committee under the chairmanship of Sunil Mehta, non-executive chairman of Punjab National Bank, to examine the idea of an ARC and/or asset management company (AMC) for faster resolution of stressed assets involving multiple state-owned lenders. The provision for setting up ARCs was brought in The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. The SARFAESI and SICA (Sick Industrial Companies (Special Provisions) Act), 1985 were two acts that existed before Insolvency and Bankruptcy Code (IBC) for insolvency proceedings. While SICA was repealed in 2016 the SARFAESI still exists, providing a legal basis for Asset Reconstruction companies, although as per Section 238 of IBC law it can override existing laws like SARFAESI.

The committee had submitted its report and the government has supported its recommendations. Piyush Goyal said, “Sunil Mehta committee on bad loans resolution has recommended a five-pronged strategy, Project ‘Sashakt’ to deal with Non-performing Assets in the country’s banking system. The five-pronged strategy includes SME resolution approach, bank-led resolution approach, AMC led resolution approach, NCLT/IBC approach, and asset-trading platform. An independent AMC would be set up, and AIF would raise funds from institutional investors, AMC will become a market maker and ensure healthy competition, fair price and cash recovery, there could, however, be more than one AMC.”

RelatedPosts

Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

India’s Millionaire Wealth Grows by 8.8% in 2024, Reaching $1.5 Trillion: Report

India’s economy to grow by 6.3 pc in 2025, 6.4 pc in 2026 as global growth slows: OECD

Load More

NPAs, asset reconstruction

Primarily, there were two ideas which were being explored for the resolution of small loans. The first one was to form a bad bank and transfer all the bad loans there, with the second option involving a resolution through an AMC. A bad bank is a corporate structure to isolate illiquid and high-risk assets held by a bank or a financial organization, or perhaps a group of banks or financial organizations. Eventually, the government came up with the idea that the formation of an ARC will be much better than creating a bad bank for small loans recovery. The larger bad debt loans are already being solved through IBC proceedings in National Company Law Tribunal (NCLT). Ashvin Parekh, the managing partner at Ashvin Parekh Advisory Services, said “the process amounted to shifting assets from the banks’ balance sheet to the treasury and if there is participation by banks, there will be a conflict of interest.”

The large NPAs of public sector banks were the biggest problem the government was facing in this regard. The government had to recapitalize the public sector banks to give a boost to lending because they did not have the capital to lend loans to the industry. Their capital was turned into NPAs by poorly performing companies and there was no solid mechanism through which this bad debt problem could be solved and the culprit companies could be punished. The Modi government brought the IBC law which is proving to be highly effective in solving the problem of NPAs. To speed up the process for MSME NPAs, the government may allow an Asset Reconstruction company to take over the loans stressed assets involving multiple state-owned lenders which will bring more money to public sector bank coffers. This will boost the lending by banks which will result in more activity in the market and therefore faster economic growth in the country.

Tags: asset reconstructionEconomynon performing assetsNPAs
Share1670TweetSend
Previous Post

Fishermen association of Thoothukudi blames leftist outfit for instigating anti-sterlite violence

Next Post

One year of GST: The journey so far

Related Posts

Opportunities for Youth in a Changing India
Economy

Opportunities for Youth in a Changing India: Global Investment Expert Manu Seth Shares Insights

9 July 2025

While much of the world faces growing uncertainty- geopolitical tensions, economic sanctions, and social unrest; India is carving a...

Simple Legal Steps to Protect Your Brand in India
Business

Simple Legal Steps to Protect Your Brand in India

8 July 2025

Introduction A brand is not just a visual symbol - it refers to the belief in a business, credibility...

Indian-Origin Tesla CFO Vaibhav Taneja Appointed Treasurer of Elon Musk’s 'America Party'
Business

Indian-Origin Tesla CFO Vaibhav Taneja Selected Treasurer of Elon Musk’s ‘America Party’

7 July 2025

In a notable recognition of Indian talent on the global stage, Vaibhav Taneja, Tesla’s Indian-origin Chief Financial Officer, has...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

Delhi’s Trump Card: Kejriwal Wants a Nobel for Surviving Politics

Delhi’s Trump Card: Kejriwal Wants a Nobel for Surviving Politics

00:05:03

Team B of DMK? The Truth About Actor Vijay’s Party

00:07:45

Rs 15,000 cr gone? Saif Ali Khan's crown crushed by enemy property law

00:04:40

Siddaramaiah Sparks Vaccine Theory to Hide Congress Chaos?

00:09:21

Murugan Wave Rattles INDIA Bloc, Triggers Reactionary Meet in Madurai

00:08:10
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited