‘Resolution painfully slow’

Mumbai: RBI Deputy Governor Viral Acharya on Tuesday admitted that several resolution mechanisms and frameworks have been offered by the RBI to banks to get it going, but the progress has been “painfully slow”.

“Most of the assets remain laden with such high levels of bank debt that their interest coverage ratio is lower than one ... Original promoters — who rarely put in any financing and primarily provide sweat equity — have had somewhat of a field day, facing limited dilution, if any, of their initial stakes nor much of a threat of being outright replaced,” he said. ENS