Agency, The Bankers of India (IBA) has proposed to the government to run a "bad bank". If the Indian government accepts the offer, Indian banks will be relieved to manage bad debts.

The Indian Banks Association (IBA), an association of Indian banks, made the proposal on May 12 to the Ministry of Finance and the Reserve Bank of India (RBI). According to Indian media, a 'bad bank' has been proposed in India. According to Indian media, the IBA has also demanded an initial capital of Rs 10,000 crore from the government.

The bank proposed by the IBA will be a third party which will purchase the bad loans of Indian banks, and will recover the bad loans itself. In this way, measures have been taken to get rid of bad loans in Indian banks.

Billions of rupees have been lost in the multi-billion dollar bank crisis in India. In the last three years alone, Indian banks have added Rs 1.44 crore in bad loans. Bad debt has reached Rs 9.36 crore from Rs 7.92 crore three years ago. A separate bank for bad debt management in India was envisaged by the 2016-17 Economic Survey.