FM announces sovereign guarantee for bad banks
September 16, 2021  17:36
image
Finance Minister Nirmala Sitharaman on Thursday announced a formal government guarantee on the securities receipts that the planned 'bad bank' will issue to banks as it takes on non-performing assets from their books.

The Union Cabinet yesterday approved Central Government guarantee up to Rs 30,600 crores to back Security Receipts to be issued by National Asset Reconstruction Company Limited, Finance Minister Nirmala Sitharaman said at a press conference in New Delhi.

"In 2018, just two out of 21 public sector banks were profitable. But in 2021, only two banks reported losses," the FM said.

"We are also setting up India Debt Resolution Company Ltd. The PSBs will have 49% stake in India Debt Resolution Company Ltd, the rest will be for private players."
« Back to LIVE

TOP STORIES