Homefinance News

    Need a strong asset management company, not an asset reconstruction company, says SBI chairman Rajnish Kumar

    finance | IST

    Need a strong asset management company, not an asset reconstruction company, says SBI chairman Rajnish Kumar

    Mini

    After interim finance minister Piyush Goyal announced that a committee has been formed to explore setting up an asset reconstruction company (ARC) to take over stressed assets of public sector banks, State Bank of India (SBI) on Wednesday said a strong national asset management company (AMC) is needed for the country.

    After interim finance minister Piyush Goyal announced that a committee has been formed to explore setting up an asset reconstruction company (ARC) to take over stressed assets of public sector banks, State Bank of India (SBI) on Wednesday said a strong national asset management company (AMC) is needed for the country.
    Speaking to CNBC-TV18, Rajnish Kumar, chairman, said panel under Punjab National Bank non-executive chairman Sunil Mehta will suggest timeline for AMC and can wait for a few more days until committee comes out with the report.
    Kumar said the new body will work within the existing framework and there is no need for any new legislation or guidelines for setting up an AMC or ARC.
    According to him, new AMC with a specialised setup, can manage assets and there are various models available around the world.
    The AMC can be operational in three-six months and banks will decide how much to contribute on basis of risk appetite, he added.
    Talking on stressed power sector assets, he said this will be the first to go through the AMC and the bank has identified nine power assets.
    He also cautioned that economic consequences will be significant, if the power sector issues are not resolved.
    On consolidation of public sector banks, he said there is consensus that India doesn’t need 21 banks.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng