Project Sashakt: 5 prong strategy on stressed asset resolution
Finance Minister Piyush Goyal unveiled 'Project Sashakt', a five-prong strategy to deal with non-performing assets. Sashakt aims to strengthen the credit capacity, credit culture and credit portfolio of public sector banks.
What is Project Sashakt?
Project Sashakt was proposed by a panel led by PNB chairman Sunil Mehta. The Five-Prong Approach is as under:-
1. Outlining SME Resolution approach for Bad loans of up to ₹50 crore - which will be managed at the bank level, with a deadline of 90 days.
2. Bank-led Resolution Approach for bad loans between ₹50-500 crore - Under this approach banks will enter an inter-creditor agreement@, authorizing the lead bank to implement a resolution plan in 180 days, or refer the asset to NCLT.
3. AMC_AIF Resolution Approach for loans above ₹500 crore - The panel recommended an independent AMC, supported by institutional funding through the AIF. The idea is to help consolidate stressed assets.
4. NCLT / IBC Resolution Approach &
5. Asset-Trading Platform Approach.
Details on the following things are mentioned in the Blog Post "Project Sashakt: 5 prong strategy on stressed asset resolution"🙁 For full details on Project Sashakt please clickon the following link: Project Sashakt: 5 prong strategy on stressed asset resolution) or Blog Post- Project Sashakt: 5 prong strategy on stressed asset resolution
Who will own the stressed asset?
What do investors think about the plan?
What is the money involved?
@ Inter-Creditor Agreement