RBI chief Raghuram Rajan meets financial institutions over bad loans

The Reserve Bank of India (RBI) said Governor Raghuram Rajan and two of his deputies met with banks and other financial institutions on Monday to discuss stressed loans in the banking system.

Domestic banks are grappling with more than $110 billion of troubled debt, a burden that is holding back new loans and hampering a speedier economic recovery.

The RBI said the meeting with representatives from banks, non-banking finance companies and asset reconstruction companies reviewed existing systems for recasting and restructuring stressed assets, including the joint lenders forum and the rules governing sale of bad debt.

The RBI said it received several suggestions at the meeting which will be examined by the central bank.