To overcome with the problem of Non Performing Assets (NPAs) of Public Sector Banks (PSBs) and to curb the repetition of the same in the future, Government said that all the loan above Rs 250 crore will be monitored closely with stringent vigilance through the system which will raise the alarm at the earliest.
Addressing a press conference in the presence of Finance minister Arun Jaitley and Revenue Secretary Hasmukh Adhia, Secretary, Department of Financial Services (DFS) Rajiv Kumar presented six-point agenda for the banks with an aim of making banks more responsible, so that the NPAs issue does not get repeated in future said that during his presentation he categorically said that the loans above Rs 250 crores will be closely monitored.
He said that Government is recapitalizing the banks with Rs one lakh crore which will enable them to lend more than Rs 5 lakh crores. Out of Rs one lakh crore, only Rs 8139 crore will be through Budgetary provisions whereas Rs 80,000 crores will be through bonds.
Rest of Rs 10132 crore will be raised through market. Giving the details of six point agenda, he said, “Now no banks will lend less than 10 percent of the total loan in case it is being given in a consortium.