New Delhi, June 29 -- Public sector banks (PSBs) are drawing up a plan to lay a threshold of Rs.100 crore and above and set up specialized teams to recover bad loans, two persons aware of the matter said.

The plan being pushed by the finance ministry also involves possibly writing down or liquidating cases where the default amount is low but recovery is difficult, and where the transaction cost of pursuing the case and making a recovery is more than value of bad loan, the first person quoted above said.

These banks have also been asked to restructure their legal teams if they have failed to secure resolutions from courts and tribunals for cases being pursued under Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal...