The inter-creditor agreement (ICA) between banks, which is part of the government’s Sashakt plan, is meeting with some stiff resistance from some private sector banks and almost all foreign banks. The agreement was mooted by the Sunil Mehta committee as the first step to resolve bad or non-performing loans (NPAs). Any bank that signs the ICA, agrees to the following conditions: 1. When a borrower defaults or shows signs of default, the lead bank shall alone negotiate with the promoter or with rival bidders for a resolution. 2. If any bank dissents, it has the option to buy the loan from other bankers at a premium or sell its loan to them at a 15% discount to the liquidation value of the loan. 3. If two-thirds of the lenders involved in a loan have signed the ICA, then the provisions of this agreement will apply. Almost all public sector banks have signed the agreement. Among private banks ICICI, Axis, Federal and some smaller banks have signed, but banks like HDFC, Kotak and