Protective shield for banks: Govt forms panel to solve NPL issue

The government is stern in its decision to protect lenders against stressed assets. CNBC-TV18 learns that a two-member Oversight Committee has been formed to oversee the proposals floated by banks to deal with non-performing loans (NPLs). The Oversight Committee will have Pradeep Kumar, former member of Central Vigilance Commission (CVC) and Janki Ballah, former State Bank of India chairman as its members. Bank Bureau chairman Vinod Rai has earlier said that by June 15, an alternative mechanism will be put in place to deal with NPL issue.The committee will have to submit its proposal by December 31 this year. CNBC-TV18’s Sapna Das reports that inputs from the Reserve Bank Governor, CBI director, CVC and Department of Financial Services were incorporated while forming the committee. Watch video for more...