FM to Discuss NPA Issue With RBI Officials, Likely to Form a Set up to Tackle Bad Loans
Finance Minister Arun Jaitley will meet with senior Reserve Bank of India (RBI) officials in New Delhi on Friday to discuss the issue of banks' non-performing assets (NPAs) or bad loans.
NEW DELHI: The magnitude of the problem can be guaged from the NPA figures of state-run banks, which at the end of the current fiscal’s second quarter that ended in September, rose to Rs 6.3 lakh crore, as compared to Rs 5.5 lakh crore at the end of the first quarter.
RBI Deputy Governor Viral Acharya has suggested forming of a Private Asset Management Company (PAMC) and National Asset Management Company (NAMC) to tackle the bad loans issue.
As per the plan, the banking sector could be asked to restructure about 50 large stressed assets in sectors like metals, construction, telecom and textiles, by December 31, 2017.