More than 20 Indian lenders on Monday signed a pact aimed at faster resolution of bad loans, officials said, while more could join by the end of the week in what is the latest bid to cut record levels of soured assets in Asia’s third-biggest economy.
A government-appointed panel this month proposed the so-called inter-creditor agreement among other measures after criticism that at times smaller lenders in a lending consortium were creating roadblocks for speedier resolution.
The agreement gives a bigger say to the lead lender in a consortium and allows a resolution plan to be approved if 66 percent of the banks in the group agree to it. Dissenting lenders have the option to sell their stressed loans to a company at a discount, or buy out loans to that entity from all other lenders at a premium. Read More