The government's bank recapitalisation scheme will equip public sector lenders with the necessary “accounting capital” to write off some portion of the bad loans on their books, Keki Mistry, vice-chairman and chief executive officer at HDFC Ltd. told BloombergQuint in an interview.
As part of the insolvency resolution process, state-owned banks needed accounting capital to take a decision to cut down some of the bad loans they have given historically, Mistry said. He expects a resolution on most of the Reserve Bank of India-identified stressed accounts within the next 3-4 quarters.
Watch the full interview here.
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