Aiming to offer fast track NPA resolution, 24 banks have finalised the inter-creditor agreement (ICA) framework that envisages effective communication among lenders.
The ICA mechanism which is enforced in this month, will seek to reduce the non-performing assets (NPAs) in the banking sector crossed Rs 9 trillion at end-December 2017 and the RBI has warned of further worsening of the situation.
The agreement, a part of Project Sashakt, will be taken to boards of respective banks and would be cleared in couple of days, said PNB non-executive chairman Sunil Mehta after the meeting. The meeting called by Indian Banks Association was also attended by Finance Minister Piyush Goyal, who had accepted the report of the Sunil Mehta Committee earlier this week. It makes sure that there is effective, good communication amongst banks and if anyone has a difference, then they will resolve it among themselves, he said.