State-run banks will need a bigger recapitalisation to resolve bad loan problems weighing on their balance sheets, the Reserve Bank of India (RBI) governor Urjit Patel said on Saturday, reported a leading news agency.
Urjit Patel was talking at the National Conference on Insolvency and Bankruptcy: Changing Paradigm which is held at Mumbai on Saturday. Finance Minister Arun Jaitley was the Chief Guest at the national conference.
Extra capital will need to be raised in several ways, including raising funds from the market and through the government diluting its stake in state-run banks, Urjit Patel added. He also said that the banks would need to take haircuts as they address bad loans.
Finance Minister Arun Jaitley said that Sick Industrial Companies Act (SICA) was an absolute failure and Debt Recovery Tribunals (DRTs) were somewhat faster but not much effective as envisaged..
Urjit Patel was talking at the National Conference on Insolvency and Bankruptcy: Changing Paradigm which is held at Mumbai on Saturday. Finance Minister Arun Jaitley was the Chief Guest at the national conference.
Extra capital will need to be raised in several ways, including raising funds from the market and through the government diluting its stake in state-run banks, Urjit Patel added. He also said that the banks would need to take haircuts as they address bad loans.
Finance Minister Arun Jaitley said that Sick Industrial Companies Act (SICA) was an absolute failure and Debt Recovery Tribunals (DRTs) were somewhat faster but not much effective as envisaged..
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