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Sunil Mehta Committee Formed for Faster Resolution of Stressed Assets

Published on June 12, 2018
Union Finance Minister Piyush Goyal has formed a committee under the chairmanship of Sunil Mehta.


  • The committee has been set up to examine the setting up of an Asset Reconstruction Company (ARC) and/or Asset Management Company (AMC) for faster resolution of stressed assets involving multiple Public Sector Bank
  • Bank of Baroda Chief Shri Jayakumar will formulate a strategy regarding PSBs taking over good loans of banks under Prompt Corrective Action (PCA)

Stressed Asset

Stressed Asset is a sum of Non-Performing Asset, Restructured Loans and Written off Assets. Therefore, to understand stressed assets, we must have an idea about NPAs, Restructured Loans and Written off assets

Non-Performing Assets
If the interest/instalment of principal remains overdue for 90 days then it is considered as Non-Performing Assets

Restructured Loans
A new loan that replaces the outstanding balance on an older loan, and is paid over a longer period, usually with a lower instalment amount.

 Written off Assets
When the bank or lender doesn’t count the money borrower owes to it, its called written off asset. The written-off loans are compensated through some other way. There is no meaning that the borrower is pardoned or got exempted from payment.

Expected Questions

Union Finance Minister Piyush Goyal has formed a committee to examine the setting up of an Asset Reconstruction Company (ARC) and/or Asset Management Company (AMC) for faster resolution of stressed assets involving multiple Public Sector Bank. Who is the chairman of the committee?
a. Prakash Raj
b. Sunil Mehta
c. Nikhil Adhikari
d. Pranjal Das
e. Munish Garg
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