The Sunil Mehta committee on Monday submitted the report to the union finance ministry and recommended a five-pronged strategy — Project ‘Sashakt’ — to deal with non-performing assets (NPAs) in the country’s banking system.
Throwing more light on the above development, Sunil Mehta, Non-Executive Chairman, Punjab National Bank, said private equity investors or large institutional investors have shown interest in NPAs and that encouraged us to go ahead with this recommendation.
Speaking to CNBC-TV18, Mehta said that domestic or international private equity investors are welcome to participate in this project.
According to Mehta, public sector banks depending on their capabilities can also participate, so do domestic institutions and private sector banks.
He said that asset reconstruction company (ARC) is only pass-through and eventually asset management company (AMC) or alternate investment fund (AIF) will take over from them, Mehta said.
Meanwhile, Siby Anthony, Chairman, Indian ARC Association, welcomed the creation of powerful AMC and said that it's not different from ARC.
But, all AMCs and ARCs will work under the guidelines of the RBI, so there may be a competitive bidding, he added.
Jayesh Mehta, Head of Treasury, Bank of America Merrill Lynch, said the project Sashakt will help to resolve one problem, which is decision making on bank side.