Economic Survey 2016-17: Suggests setting up of a centralised Public Sector Asset Rehabilition Agency
The consequent squeeze of banks has led them to slow credit growth to crucial sectors-especially to industry and medium and small scale enterprises (MSMEs)-to levels unseen over the past two decades. As this has occurred, growth in private and overall investment has turned negative . A decisive resolution is urgently needed before the TBS problem becomes a serious drag on growth.
Gross NPAs has climbed to almost 12 per cent of gross advances for public sector banks at end-September 2016, said Survey. Photo: Pixabay