India seeks to tackle stressed loans without backlash

New Delhi

INDIA'S Finance Minister Arun Jaitley said on Monday that state bankers would propose a mechanism to reach "commercially prudent" loan settlements, as the government and lenders met to discuss how to tackle the country's bad loan problem.

The proposal is to create a steering committee of the five banks with the greatest loan exposure that would analyse problem loans and recommend steps such as replacing management and deep loan restructuring at ind…