Indian banks are currently in $120 billion of stressed loans. Image Source: Reuters
Written By: Reuters
Updated: Mon, Jun 13, 2016 09:12 pm
The Reserve Bank of India on Monday relaxed guidelines for restructuring of large stressed assets by lenders in a move that would allow the banks to more effectively manage bad loans on their books.
India's banks are saddled with about $120 billion in stressed loans, or 11.5 % of the total, and RBI Governor Raghuram Rajan has set a deadline of March 2017 to clean up the bad loans on bank balance sheets.