Resolution of Indian banks’ bad loans primary focus of government – adviser

NEW DELHI A resolution of Indian banks’ bad loans is the “first and primary focus” of the government, a senior finance ministry official said on Wednesday.

Sanjeev Sanyal, principal economic advisor at the ministry, also told television channel CNBC-TV18 that state-run banks would be consolidated primarily on commercial considerations.

Sanyal’s comments came a day after the Reserve Bank of India (RBI) revealed that it had identified 12 of the largest loan defaulters and would order lenders to start bankruptcy proceedings against them to start unclogging the $ 150 billion in bad debt plaguing Asia’s third-largest economy.