Mumbai, June 10 (TIWN) Moody's Investors Service has termed the RBI's revised framework for the resolution of stressed assets a credit positive move while suggesting the country's insolvency code mechanism to speed up resolution process.

It has also given thumbs up to the RBI's move to extend the circular to NBFC firms on provisioning for NPAs. "The Reserve Bank of India's (RBI) revised framework for the resolution of stressed assets is credit positive because it brings back the focus on the need for the timely resolution of such assets, and the build up of loan loss provisioning against those assets," Alka Anbarasu, Vice President, Financial Institutions Group, Moody's Investors Service said. Extension of the circular to non-bank finance companies (NBFCs) will help align the loan-loss provisioning norms for the large stressed accounts of NBFCs with commercial banks, she said. But she also added that the IBC still has to overcome the timely resolution of the stressed assets.