Asset management firm in the works to tackle bad loans of PSU banks

NEW DELHI: The government may set up an asset management firm to assist state-run lenders in disposing of their bad loans, leaving them to focus on core banking.The proposed firm will not be a full-fledged bad bank, an idea that the Reserve Bank of India (RBI) is not in favour of.Instead, it will act as a conduit between distressed funds, asset reconstruction firms and lenders.“Unlike a bad bank, it won’t take up the impaired loan portfolio on