Twin balance sheet approach

Merger of weak banks with relatively stronger banks Lending restrictions of weak banks Privatisation of few banks

EXISTING RESOLUTION SCHEME: Corporate Debt Restructuring ( CDR)

It’s a deep restructuring scheme which allows for moratorium of interest and extension of tenure Since 2001 and revised in 2015

ESTIMATED AMOUNT LOCKED ` 2 lakh crore GAPS

No provisioning advantage in the books of banks Better schemes like S4A exist in the market

SIBY ANTONY CEO, Edelweiss ARC

“Ìn every case where the debt is less than `10,000 crore, an ARC structure may be best suited to handle it. And cases where the debt is very high, say ` 30,000 crore or

` 40,000 crore, an ARC today may not be ready. We need to make such a distinction in current stressed loan pileup”