Breaking NewsCurrent AffairsIndia

Govt plans to recover Rs 1.80 lakh cr during FY 2018-19: Jaitley

New Delhi, Sep 26 (UNI) The Government has set the target to recover Rs 1,80,000 crore during the current financial year, Union Finance Minister Arun Jaitley said on Tuesday.

Jaitley said the recovery would be made after working on different strategies and would recover around Rs 1,80,000 crore, which is more that Rs 74,562 crore, collected in the last financial year.

“Banks are expected to recover about Rs 1.80 lakh crore from overall non-performing assets (NPAs) through insolvency and other resolution mechanisms.”

Jaitley was addressing a news conference after his annual performance review meeting with CEOs of the Public Sector Banks here.

He said the Government has planned to mobilize more than Rs 18,500 crore through monetisation of banks’ non-core assets in the current financial year for strengthening their capital base.

The Minister said they took note of the continued improvement in banking in terms of highest ever recovery in the last quarter, pick-up in credit growth to 13.5 per cent, growth in MSME lending to 10.5 per cent, the highest provision coverage ratio in over five years and higher operating profits.

He said under the prompt corrective actions (PCA), banks would pursue their quarterly performance milestones, including improvement in their lending risk profiles through a 6 per cent reduction in credit RWA to Advances Ratio and 8 per cent reduction in Cost to Income Ratio. Banks’ performance was on track during first quarter.

“Banks will complete action by December 2018 on fraud detection and initiation of action in respect of NPAs with outstanding of above Rs 50 crore,” he added.

He said that the banks were asked to bring more flexibility in the PCA rules so that the 11 banks, which come under the PCA, can provide loans and improve their situation rapidly.

The government, he said, has also invested Rs 70,000 crore in the last three years and the banks have also raised Rs 2 lakh crore through various means.

He said the Insolvency and Bankruptcy Code impact was clearly visible and NPAs were on decline mode as recoveries have picked up. Credit growth has significantly moved upwards and lending ability of banks were much better.

He said the amendment in the IBC to debar wilful defaulters has had positive consequence in terms of resolution, recovery, provisioning and credit growth. The defaulting borrowers have been stepping forward to make payment in order to participate in the resolution process.

Department of Financial Services Secretary Rajiv Kumar said the government has set the agenda for enhanced credit growth, focus on recovery and financial inclusion among others.

After highlighting the process & systemic reforms under taken, he emphasized the need for structural changes to establish Brand PSB.

MK Jain, Deputy Governor, RBI, also joined the meeting. While sharing the regulatory concerns, he pledged all support and encouraged bankers to work in cohesion.

The review meeting came close on the heels of losses incurred by public sector banks, reported frauds and scams, identification of higher NPAs, credit-related issues, markets’ up and down and government-induced consolidation.

Show More

IENewsDesk

Indian Expose aims to bridge the gap of communication, information and most of news between print and television to make it available online to our readers 24×7, 365 days in a year.

Leave a Reply

Back to top button
Close
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker
%d bloggers like this: