The Supreme Court order quashing a crucial RBI circular on dud assets resolution will push resolution timelines and also clouds the gains achieved on credit discipline over last year, a report said on Wednesday.
The order will not materially impact the banks’ asset quality as a bulk of stress has already been recognised, the report by domestic rating agency Crisil said.
“Supreme Court ruling on RBIs norms to extend resolution timelines on NPAs...The improvement in credit discipline in the past year and the expectation of quick turnaround in stressed assets resolution could come under some cloud,” it said.
Companies in the power sector, which were among those who had petitioned the apex court, will get a respite, the agency said, adding most of them were on the verge of being referred to NCLT (National Company Law Tribunal).