whether selling of bad loans by public sector banks is advisable?



when others are able to recover, then what is the problem of the banks with infrastructure.

whether selling of bad loans by public sector banks is advisable?
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2 Replies to “whether selling of bad loans by public sector banks is advisable?”


  1. cause, banks have to work under a certain guide lines from bank, and when they sell loan,its like on 20 to 40% of face value.
    and then the buyer sell it locally to goons or people with clout,with a huge commision, so that way, banks gets their 20 to 40% upfront and then the buyer stands the risk,and that way, and even browwers gets a good deal. cause the people who come to collect it, are hardly looking at 30% of the total loan.
    so that way its a win win for all, including banks,as they getting some money,which was there as non performinn assest in their balance sheets.
    its a small price to pay for all these bad loan headache and recovering thing.





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