Bad loan ordinance to improve transparency, says SBI Chairman Arundhati Bhattacharya

NEW DELHI: The new ordinance that empowers RBI to nudge banks to deal with stressed assets will improve transparency and provide higher assurance when dealing with bad loans, said Arundhati Bhattacharya, chairman, State Bank of India (SBI).
India’s largest lender had lobbied to involve government agencies in dealing with bad loans. “People having to take difficult decisions can now feel they are doing it in the proper way, with a transparent process,” Bhattacharya said in an interview with ET.On Friday, the government approved an ordinance enabling action by RBI in case of bad loans.
RBI can now instruct banks to act against defaulters and propose resolutions.
Even as deteriorating loan books plague the Indian financial sector, Bhattacharya is charting plans to take the country’s largest bank to a global top 30 position.