MUMBAI Dec 17 The Reserve of India released a
discussion paper on Tuesday for early recognition of financial
stress and steps for debt collection.
It proposed leveraged buyouts for specialised entities for
acquisition of "stressed companies" and said sector-specific
companies and private equity firms may be allowed to play an
active role in stressed assets market.
It also proposed improvement in current debt restructuring
process and more expensive future borrowings for borrowers who
do not cooperate with lenders in resolution.
Indian banks, particularly state-run lenders, are reeling
under deteriorating asset quality and falling profits, prompting
the central bank to take steps to improve debt recovery and
early detection of stress.
The RBI has invited comments on the paper till Jan. 1, 2014.
(Reporting by Swati Pandey and Sumeet Chatterjee; Editing by