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

Fighting Covid-19, India has realized its collective strength: PM

In the face of the Covid-19 pandemic, people of India have realized their collective strength, prime minister Narendra Modi said in a short video message Friday morning. He also urged people to light lamps Sunday night as a gesture of this collectivity. “Today marks nine days of the na

COVID-19 demobilisation: Lessons for public governance

Demobilization, like its predecessor – demonetization, is another decision gone bad in implementation.  In both instances a careful public administrative action through its governance systems could have saved the magnitude of impact particularly on the most vulnerable sections of the society. Th

Don’t fear Corona, fight it

In a bid to break the “chain of transmission” of the deadly Covid-19, India, a country with more than 1.3 billion population, observed a voluntary ‘Janata Curfew’ on March 22. This has been followed by a 21-day, nationwide lockdown from March 24. Prime minister Narendra Modi also re

Sci-Tech Empowered Committee set up for COVID-19

To take speedy decisions on research and development for Sars-Cov-2 virus and COVID-19, the government has constituted a Science and Technology Empowered Committee. The committee, set up on March 29 and chaired by Niti Aayog member, professor Vinod Paul and professor K Vijay Raghavan, princi

Covid-19 and real estate: This could be last straw that broke camel’s back

Covid-19 may turn out to be the last straw that broke the camel’s back so far as the real estate sector is concerned. It broke out at a time when pundits were estimating the GDP to be hovering around 2.5% with unprecedent levels of unemployment. This itself was a good indicator that the real estate s

India ramps efforts as COVID-19 cases rise

As COVID -19 cases continue to rise amid a 21-day lockdown, the centre and the states are proactively taking measures to provide aid to the underprivileged and the needy during this unprecedented situation.         By Sunday morning, India had registered 27



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter