NPA problem exaggerated; market over-reacting: FM

The panic created over media reports on issues concerning the public sector banks are exaggerated, says the Finance Minister, Arun Jaitley. While the bad loans issues exist, the volume in extent of the problem should not be exaggerated, Jaitley says. The Reserve Bank of India (RBI), through various policies, have empowered banks to deal with the situation, he says.  Speaking on the sell-off witnessed in the market today, Jaitley says that India need not have exaggerated reaction to the panic in global markets. India has managed to clock in 7.5 percent plus growth even in scenario of global slowdown, which is commendable, he adds.The manufacturing and service sector have seen recovery and even the agriculture sector will bounce back with normal monsoon this time around, Jaitley says. Watch video for more.