The reserve bank of india, in its latest attempt to deal with toxic bank assets, last week gave the country's lenders greater flexibility to take control of firms that fail to meet restructuring obligations. The new rules, under the Strategic Debt Restructuring Scheme, have been made applicable to all past and future restructurings. "It's a bold step taken by the RBI to tackle stressed assets in the Indian banking system," said Birendra Kumar, managing director and CEO of International Asset Reconstruction Co, a bad debt manager that is selling a stake to KKR. "The new rules will be effective if lenders get together in time to take over management control and also do not face any legal challenges along the way."
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