Nirmala Sitharaman announces a reform for clearing up Bad Bank
In a press conference on September 16(Thursday), Finance Minister Nirmala Sitharaman addressed the media, outlining the measures done for the 'Bad Bank'. She has unveiled a major reform initiative, the purpose of which was already stated during the budget. The cabinet approved the idea to establish a bad bank to assist banks in dealing with problematic debts. The plan is to purchase problematic loans from banks. Bad loans are known as 'non-performing assets,' and they have been very high, particularly in public sector banks, creating a slew of issues. In the past six years, public banks have recovered 5.01 lakh crore. The finance minister has also discussed the measures that have been done to minimise problematic loans. 'In addition, many more measures were made to clean up the public sector banks.', Nirmala Sitharaman has asserted.