Axis Bank MD and CEO Shikha Sharma welcomed changes in NPA resolution as moves that will “force” decisions by cutting layers, and also said the bank is looking for one more life insurance distribution tie-up. “There are layers of process (in resolution). What the ordinance is doing is that it is cutting that layer off then having to go back to the board. It is forcing a decision mechanism because it is saying that if 60 per cent agree, rest have to fall in line,” she told reporters here. She said the government’s last week ordinance has been a “great boost” and the bankers were seeking similar measures for a long time. Sharma, while speaking on the sidelines of an event organised by industry lobby CII here, said the trouble with Joint Lenders Forum at present is that decisions do not get taken for want of having adequate ratio of bankers on board, or the boards do not approve decisions taken by the bankers.The government’s ordinance, followed by notifications by the RBI creates a “forcing mechanism” to take decisions, she said. The CEO of country’s third largest private sector lender, saddled with high proportion of dud assets, said all bad assets will not turn good, and banks will have to take haircuts because of this mechanism. Meanwhile, Sharma also said that Axis Bank is looking to tie-up with one more life insurance player for distributing policies.
For more news updates Follow and Like us on Facebook