NPAs on a decline as loan recovery picking up, says Arun Jaitley after annual PSU banks' review meet
Jaitley said after the Insolvency and Bankruptcy Code (IBC) came into force, which calls for an auction of assets of loan defaulting entities, recoveries have picked up.
New Delhi: Finance Minister Arun Jaitley on Tuesday said bad debts or NPAs in the banking system are on the decline as recoveries of unpaid loans have picked up.
Speaking to reporters after the annual review meet with top PSU bankers, he said last several years had been challenging for public sector banks as a large amount of lending was held up in NPAs. But after the Insolvency and Bankruptcy Code (IBC) came into force, which calls for an auction of assets of loan defaulting entities, recoveries have picked up.
Recoveries are better, the lending ability of banks is much better and to top it all credit growth has significantly moved upwards, he said.
"We are passing through a phase of good growth as far as the economy is concerned. Consumption has moved up, and therefore the banking activity is bound to pick up," he said.
Financial Services Secretary Rajeev Kumar said banks expect to recover Rs 1.8 lakh crore through IBC and other routes during the current fiscal.
The review meeting Tuesday discussed credit growth and asset quality, he said.
The focus should now be on arresting fresh slippages, he said adding close to Rs 18,000 crore worth of non-core assets will be sold by PSBs this financial year.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
RBI governor Shaktikanta Das says second COVID-19 wave one of key risks to India's economic recovery
Shashanka Bhide, a member of the Monetary Policy Committee, also said uncertainties relating to COVID-19 will impact growth and inflation scenarios in the next two to three quarters
Tank tourism can help build water resilience in Indian cities; being local, outdoors and socially-distanced make it timely
Spurring local tourism around our tanks may be just what the doctor ordered.
Economic fallout of COVID-19 to push at least 150-175 mn people into extreme poverty, says UN expert
Special Rapporteur Olivier De Schutter said most of those who will fall into extreme poverty will be workers in the informal sector or in precarious employment conditions, especially women