India’s Finance Minister Arun Jaitley recently held a meeting with the heads of public sector (nationalised) banks.
During the meeting, he reviewed performance, and future projections of growth of this important sector. One aspect which caused worry was the increase in Non Performing Assets from 5.20 percent to 6.03 percent in the first quarter of this fiscal.
In this context, Jaitley told the banks to come down heavily on wilful defaulters, and reminded them that they were already empowered by relevant banking rules and regulations to take these defaulters to task, and recover the dues.
With this message, he asked the banks to clean up the debris of default from their balance sheet at the earliest, and to improve the quality of their assets quantitatively, at the earliest.