‘NPAs, high debt level to ebb in 6-9 months’

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‘NPAs, high debt level to ebb in 6-9 months’

 Context

Twin balance sheet problem refers to the stress on balance sheets of banks due to non-performing assets (NPAs) or bad loans on the one hand, and heavily indebted corporates on the other. “Our own assessment is that it would take another six to nine months before the banks see revival of confidence to lend afresh as they would then see reasonable amount of their NPAs get unlocked through a resolution

What is twin balance sheet problem?

Twin balance sheet problem refers to the stress on balance sheets of banks due to non-performing assets (NPAs) or bad loans on the one hand, and heavily indebted corporates on the other

Relax norms

ASSOCHAM has urged RBI to relax norms proposed in its February circular on the revised framework for resolution of stressed assets, claiming these were harsh both on the banks as also borrowers

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