Stressed assets core area of concern:FM Arun Jaitley

Mumbai Sept 22: Union Finance Minister Arun Jaitley on Friday has stated that the banking sector has seen a substantial revamp but the core problem of stressed assets still persists and is a matter of concern.

Minister has addressed the inaugural session of the
70th Annual General Meeting (AGM) of Indian Bank Association (IBA). He has said that "Two things need to be given priority- improving banking system's capacity and encouraging private sector investment. With analysis being done regarding the root of the issues, quick solutions are needed as the ability has to be strengthened. Centre will back the banking sector for this".



The Finance Ministry words assume significance because currently Indian Banks are under stress because of the rising NPAs and increase in the number of wilful defaulters to banks.Earlier the RBI and government have adopted a phase-wise restructuring scheme but it didn't help.

The government last year enacted Insolvency and Bankruptcy Code and also amended the Banking Regulation Act in May this year so that the problem can be solved. The steps have shown partial results.

Experts said that many more steps need to be taken so that the problem would not repeat itself.