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

How to promote local participation in knowledge sharing

Knowledge is a powerful weapon to help people and improve their lives. Knowledge provides the tools to understand society, solve problems, and empower people to overcome challenges and experience personal growth. Limited sources were available to attain information on the events in and arou

‘The Civil Servant and Super Cop: Modesty, Security and the State in Punjab’

Punjabi Centuries: Tracing Histories of Punjab Edited by Anshu Malhotra Orient BlackSwan, 404 pages, Rs. 2,150

What really happened in ‘The Scam That Shook a Nation’?

The Scam That Shook a Nation By Prakash Patra and Rasheed Kidwai HarperCollins, 276 pages, Rs 399 The 1970s were a

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

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