Union Finance Minister Arun Jaitley on Tuesday said banks expect to recover about Rs 1.80 lakh crore from overall non-performing assets (NPAs) through insolvency and other resolution mechanisms. “Insolvency and Bankruptcy Code impact was clearly visible. NPAs are on decline as recoveries have picked up,” Arun Jaitley after an annual review meeting of Public Sector Banks performance and reforms in Delhi.
“Last several years have been challenging for public sector banks as large amount of lending was held up in NPAs,” Jaitley added.
The meeting was attended by 21 CEOs of PSBs where issues of credit growth, recovery, financial inclusion and reforms were discussed, the Ministry of Finance said.
According to reports, Jaitley said apart from NPA recoveries, lenders also expect to monetise close to Rs 18,000 crore in this financial year via non-core divestments.
He also mentioned that the government has exhorted the banks to ensure all steps at their end to ensure clean lending and effective action in cases of fraud and wilful default should take place. This will justify the trust reposed in the banks. Arun Jaitley said banks must strive to be seen always as institutions of clean and prudent lending, a report said.