Jaitley Asks PSU Banks To Take Effective Action Against Frauds, Wilful Defaults
Finance Minister Arun Jaitley today asked public sector banks to take "effective action" in cases of fraud and wilful loan defaults.
The growing economy will also help banks grow in strength, he said at the annual review meeting of PSBs here.Conversely, as the lifeline of the economy, banks would need to build their strength to support the lending needs of a growing economy, he added, according to an official release.
Reviewing the performance of state-owned lenders, he said that the formalisation of the economy would help India achieve sustainable growth of 8 percent. The GDP growth has been estimated at 8.2 per cent in the first quarter of the financial year.
The Finance Ministry, in a series of tweets highlighting today's annual review meeting with public sector banks, said:
FM, Shri @arunjaitley exhorted the banks to ensure all steps at their end to ensure clean lending & effective action in cases of fraud & wilful default, to justify the trust reposed in banks.Banks must strive to be seen always as institutions of clean & prudent lending.
September 25, 2018The meeting took place on the backdrop of the "Alternative Mechanism" deciding to merge three public sector banks—Bank of Baroda, Vijaya Bank and Dena Bank—with a view to create a global-sized lender which would be stronger and sustainable. Banks have stepped up efforts as far as recovery of bad loans is concerned.
Lenders have made recovery of Rs 36,551 crore in the first quarter of the current fiscal—49 percent growth over the last fiscal. During 2017-18, the banks recovered Rs 74,562 crore.
Jaitley, who also holds the portfolio of Corporate Affairs, said the formalisation of the economy through the Insolvency and Bankruptcy Code, GST, demonetisation and digital payments have enabled better assessment of financial capacity and risks, and coupled with inclusive growth through massive financial inclusion, has unlocked purchasing power which will drive India's growth.
The Finance Minister, Shri @arunjaitley further said that formalisation of the Indian Economy coupled with inclusive growth through massive financial inclusion,has unlocked purchasing power which will drive India's growth.This should help India sustain a growth rate of around 8%.
September 25, 2018While noting the positive results from the IBC mechanism, Jaitley also flagged the need to assess and revisit the efficacy of the Debts Recovery Tribunal mechanism, particularly in view of long lead times in disposal of cases.
He underscored the requirement for expediting recovery through the DRT mechanism, so that their original objective of speedy recovery proceedings is realised, the release said.
"The Finance Minister noted that the perception regarding the health of public sector banks has become more positive as banks have posted positive results in terms of resolution, recovery, provisioning and credit growth," it said.
Jaitley said that the amendment of IBC to debar willful defaulters has had the unintended positive consequence of defaulting borrowers stepping forward to make payment in order to participate in the resolution process.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
