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A resolution of Indian banks' bad loans is the "first and primary focus" of the government, a senior finance ministry official said on Wednesday.
State-run banks would be consolidated primarily on commercial considerations.
The Reserve Bank of India (RBI) revealed that it had identified 12 of the largest loan defaulters and would order lenders to start bankruptcy proceedings against them to start unclogging the $150 billion in bad debt plaguing Asia's third-largest economy.
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