Public sector lender Vijaya Bank has tied up with India SME Asset Reconstruction Company (ISARC) to tackle the issue of mounting bad loans in the banking system.
The asset reconstruction company promoted by SIDBI has entered into a memorandum of understanding with Vijaya Bank with a mandate to offer services in management of stressed assets.
Under the agreement, ISARC will act as a resolution-cum-enforcement agent for the bank for the resolution of its non performing assets. ISARC is in the process of execution of similar agreements with other public sector banks.