RBI's Revised Bad Loans Circular Credit Positive: Moody's

Moody's Investors Service has termed the RBI's revised framework for the resolution of stressed assets a credit positive move while suggesting the country's insolvency code mechanism to speed up resolution process.

It has also given thumbs up to the RBI's move to extend the circular to NBFC firms on provisioning for NPAs.

"The Reserve Bank of India's (RBI) revised framework for the resolution of stressed assets is credit positive because it brings back the focus on the need for the timely resolution of such assets, and the build up of loan loss provisioning against those assets," Alka Anbarasu, vice president, financial institutions froup, Moody's Investors Service said.