In this edition of Macros With Mythili, ET NOW’s Consulting Editor Mythili Bhusnurmath discusses the issue of non-performing assets of banks (NPAs). Power sector accounts for 16% of NPAs. Banks have already restructured dues of Rs 530 bn of 7 discoms, under financial restructuring plans signed with state governments. However, with the moratorium period for repayment of the principal of Rs 430 bn ending in March 2015, and tighter regulatory norms on restructuring of loans coming into effect from 1 April, banks will have to make higher provisions, impacting their bottom lines and ability to lend to other sectors. Is there a way out? Are banks being penalised for the ills of the system? To discuss this she is joined by - Santosh Nayar, CMD of India Infrastructure Finance Co Ltd (IIFCL), Ashwani Kumar – CEO of L&T Power Development Ltd and Ashok Khurana - Director General of Association of Power Producers of India. Tune in to the full show.
