Niti Aayog has said that the Government does not have any immediate plans to create a bad bank to resolve the bad loans issue.
Commenting on the issue, Niti Aayog Vice Chairman Arvind Panagariya told the media, "Immediately, I don't see any plans to create a bad bank. In the three-year agenda, we suggested that let us do it through private sector asset reconstruction companies (ARCs) instead of bad bank."
"In the government, a new institution takes quite a while and we could have easily lost another year before any action could be taken. If you bring the bad bank as a public sector entity, then you first need to establish a public sector entity that could easily take a year," he said.
"Each of these non-performing assets will now be put on a path to resolution. There is no other way to resolve the problem," Panagariya said.
"The first set of 45-50 bad assets are likely to be taken up for resolution in the next six months," he added.