A $27 Billion Pile of Debt Looms Over India’s New Bad Bank
- Faster bankruptcy process needed for bad bank to be effective
- Bad bank to handle about quarter of India’s soured debt
This article is for subscribers only.
A bad bank in India that’s expected to launch this month may help reduce one of the world’s worst bad-loan piles but market participants say it’s a long path ahead.
The new institution, which is set to start operations by the end of June, is likely to handle stressed debt worth 2 trillion rupees ($27 billion) over time, according to a BloombergQuint report. That would be about a quarter of the nation’s non-performing debt load. By housing bad loans of many lenders under one roof, the entity should help speed up decision-making and improve bargaining power when resolving these assets.