Arun Jaitley :RBI to act tough on NPAs

NewDelhi, June 13: A top review meeting has been held yesterday.Union Finance Minister Arun Jaitley has once again issued a strong warning to bank loan defaulters. He said that the Reserve Bank of India (RBI) was at “a fairly advanced stage” of preparing a list of borrowers from whose non-performing assets (NPAs) of public sector banks are very high and they will be recovered under the new Insolvency and Bankruptcy Code enacted by the parliament.

He also said that the above move would help beleaguered public sector banks (PSBs) recover their part ofNPAs. Currently, these assets are estimated at above Rs 6 lakh crore. Minister said the above words after he along with RBI and finance ministry officials, held a review with the heads of PSBs on their problems and steps to be taken to recover the loans.He said that the Centre had already issued an Ordinance last month by amending the Banking Regulation Act, which empowers the central bank to recover NPAs of the state-owned banks.

He also spoke about various issues and said that we will take more steps and will act tough if required to recover Bad loans and we will not spare anyone. Let's hope the government is serious about the issue so that the health of the banks is improved.