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 indebted firms, according to a document seen by Reuters.