Finance Minister Arun Jaitley Monday met chiefs of top Indian PSU banks to review their state of finances and the non-performing assets situation.
In a post-meeting address to the media, Jaitley said challenges with regard to credit growth and the state of resolution were discussed at the meeting. There were already about 81 cases filed under the Insolvency and Bankruptcy Code (IBC). Of these cases, 18 have been initiated by the financial creditors and are already before the NCLT, he said, adding, since nearly 70 percent of the NPAs are in loans through consortium or multi-banking arrangement, "a speedy resolution is required".
“Under the new ordinance issued, the RBI is at a fairly advanced stage of preparing a list of those debtors where resolution is required through the IBC process. You will shortly be hearing about it,” FM Jaitley said.
The meeting was the first one after last month's promulgation of the ordinance amending the Banking Regulation Act, 1949, through which it empowered the Reserve Bank of India to tell banks to initiate insolvency proceedings to recover bad loans and promised more measures to resolve the NPA crisis.
Jaitley pointed out that PSBs had made stable operating profit of Rs 1.5 lakh crore in FY17 and after accounting for all provisions the net profit was Rs 574 crore.
On farm loan waivers, he said, states waiving loans will have to generate funds from their own resources.
The day-long meeting is also scheduled to cover areas like cyber security, digitalisation of the banking transactions, rural development, agriculture credit and education loans.
The FM said details on the movement toward digitisation were fairly satisfactory.
The bankers will be meeting with various other departments during the rest of the day to discuss on other issues on the agenda.