Banks' NPAs serious concern, government sorting it out, says Jayant Sinha

Union Minister of State for Finance Jayant Sinha has said the government was working to sort it out the problem of NPAs.

IANS May 31, 2016 16:44:27 IST
Banks' NPAs serious concern, government sorting it out, says Jayant Sinha

Hyderabad/Mumbai: Terming the banks non-performing assets (NPAs), or bad loans, issue a serious concern to the economy,Union Minister of State for Finance Jayant Sinha has said the government was working to sort it out and reduce NPAs.

Banks NPAs serious concern government sorting it out says Jayant Sinha

Minister of State for Finance Jayant Sinha. PIB

"For this, the government has brought the Bankruptcy Bill and given more freedom and transparency to the banking sector," the minister told ETV News Network.

"Most of the banks incurred heavy NPAs between 2008 and 2012, during the UPA government. The present government decided to make it public, so that people should know what is the present situation," he said.

Sinha said his government is serious about taking action against wilful defaulters.

"With the new Bankruptcy Law, the defaulters cannot escape. With this the recovery from defaulters can be made easily and crony capitalism can be controlled," he said.

In this regard, Sinha said India is looking to start a fund that will invest in distressed loans held by lenders as they strive to clean-up their balance sheets in line with the Reserve Bank of India directive in the matter.

"We will have a significant stressed assets fund," Sinha told reporters on the sidelines of an event by credit ratings agency CRISIL in Mumbai on Tuesday.

"We expect a variety of funds - stressed debt fund, special situations fund, and NIIF (National Investment and Infrastructure Fund) - to then participate in equity investment in these stressed assets," he said, adding that the details were being finalised.

He also said it was prudent for the RBI to continue with an asset quality review of the banks.

Updated Date:

also read

Congress accuses BJP-led dispensation of misusing Pegasus to being down elected Karnataka government
Politics

Congress accuses BJP-led dispensation of misusing Pegasus to being down elected Karnataka government

Demanding a court-monitored inquiry, Congress' Mallikarjun Kharge questioned if governments in Madhya Pradesh, Manipur and Goa were also toppled using the spyware

Rahul Gandhi, Union ministers Vaishnaw and Patel, Prashant Kishor among potential snooping targets: Reports
India

Rahul Gandhi, Union ministers Vaishnaw and Patel, Prashant Kishor among potential snooping targets: Reports

As the Opposition creates ruckus in Parliament, the Centre says the controversy is an attempt to malign Indian democracy and its well-established institutions

Narendra Modi removed 'irritants' from Assam, ushered development in northeast region: Amit Shah
Politics

Narendra Modi removed 'irritants' from Assam, ushered development in northeast region: Amit Shah

People of Assam have voted for the BJP for the second consecutive term as they have realised that there is no place for 'aatankwad' (insurgency) and 'andolan' (agitation) in the state, Shah asserted