Finance ministry looking at options to deal with bad loans: Arun Jaitley
Finance minister Arun Jaitley says there has been a declining trend in NPAs in the last quarter of the financial year
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New Delhi: The finance ministry is looking at various options to deal with bad loans in the Indian banking system, finance minister Arun Jaitley said on Wednesday. The options include increasing the number of oversight committees set up by the central bank to deal with bad loans.
Speaking at a meeting of the consultative committee comprising of members of Parliament on non-performing assets (NPAs), Jaitley pointed out that there has been a declining trend in NPAs in the last quarter of the financial year.
On the issue of setting-up a ‘bad bank’ to take over the bad loan, several alternatives exist and the issue is being debated on public platforms, a finance ministry statement cited him as saying.
Gross non-performing assets in the banking system were estimated at around Rs7 trillion as of the end of December.
Under the scheme for sustainable structuring of stressed assets (S4A) announced by the RBI last year for resolution of large stressed accounts, an oversight committee comprising eminent experts will formulate a resolution plan for dealing with restructured accounts.