Independent asset management companies (AMCs) and steering committees will be set up for faster resolution of the non-performing assets (NPAs), or bad loans, of state-run banks, Interim Finance Minister Piyush Goyal said on Monday.

He was briefing reporters here on the government accepting the NPAs resolution plan put forward by a committee headed by the Punjab National Bank Chairman Sunil Mehta.

The panel has recommended the creation of an AMC under the framework of an alternative investment fund (AIF) to deal with NPA cases of more than Rs 500 crore, Goyal said.

“The government will not intervene in the resolution process which would be entirely led by banks,” he said.

There are about 200 such accounts, each owing more than Rs 500 crore to banks, with a total exposure of about Rs 3.1 lakh crore.

Under this approach, independent AMCs would be set up, while AIF would raise funds from institutional investors, Goyal added.