High-level panel to tackle bad loans in PSU banks likely soon

NPAs of PSBs rose to 6.03 per cent at the end of June 2015

GN Staff | November 27, 2015


#public sector banks   #psb   #npa   #bad loans   #arun jaitley   #finance minister   #jayant sinha  

The government is planning to set up a high-level panel to effectively deal with the issue of bad loans or the non performing assets (NPAs).

"That was discussed at the meeting of the finance minister with the heads of PSU banks. It's too early to get into specifics... it will certainly have a more focused look on certain sectors," Department of Financial Services Secretary Anjuly Chib Duggal said, a news agency quoted. The panel on NPAs is likely to be headed by minister of state for finance Jayant Sinha.

"NPA is a matter of concern and the government is vigilant in this regard. The government is looking into the problems faced by steel, aluminium and textile sectors," she said. These are the sectors which have a high share of total NPAs of public sector banks.

The gross NPAs of PSBs rose to 6.03 per cent at the end of June 2015, as against 5.20 per cent in March 2015.

"NPAs are a result of many factors. There is not one silver bullet that is going to deal with them... It will require us to take a multi-dimensional approach." On Indian Overseas Bank issue, Duggal said, "There is a mechanism already to check fraud. Fraud is clearly an issue. It's is an area of concern."

On financial inclusion, she said differentiated banking is very much on the cards. "Geographical differentiation is going to happen. With smaller banks serving smaller areas, trust gets better and outreach is better and personal," she said. She stressed on the need for lowering of the cost of delivery to push financial inclusion.

"We are looking at moving a little further towards lowering costs in delivery of products," the Secretary added. On the Pradhan Mantri Jan Dhan Yojana, Duggal said it has got a very good response and deposits under the scheme have crossed Rs 27,000 crore. At the same time, she noted, zero balance accounts have come down to about 35 per cent.

Comments

 

Other News

Union Budget: New tax regime made more attractive

Several attractive benefits to provide tax relief to salaried individuals and pensioners opting for the new tax regime were announced by finance minister Nirmala Sitharaman while presenting the Union Budget 2024-25 in Parliament on Tuesday. She proposed to increase the standard deduction for

All you want to know about Union Budget, in one place

SUMMARY OF THE UNION BUDGET 2024-2025 Key points INDIA’S INFLATION CONTINUES TO BE LOW, STABLE AND MOVING TOWARDS THE 4 PER CENT TARGET PM’S PACKAGE OF 5 SCHEMES AND INITIATIVES WITH AN OUTLAY OF  ₹ 2 L

Union Budget: A quick summary

Finance minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament on Tuesday. The highlights of the budget are as follows: Part-A Budget Estimates 2024-25:         T

India’s real GDP projected to grow 6.5–7% in 2024-25

India’s real GDP is projected to grow 6.5–7 per cent in 2024-25. The Indian economy recovered swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20 levels. This was stated in the Economic Survey 2023-24 presented in Parliament Monday by finance m

`Women welfare & empowerment budget tripled in 10 years`

As the Indian concept of welfare transforms into empowerment, India is transitioning from women’s development to women-led development, highlights the Economic Survey 2023-2024. Tabled in the Parliament on Monday by finance minister Nirmala Sitharaman, the Economic Survey 2023-2024 fo

Mofussils: Musings from the Margins

Provincials: Postcards from the Peripheries By Sumana Roy Aleph Book Company, 320 pages, Rs 899 Sumana Roy’s latest work, like its p

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter