Finance Minister Arun Jaitley, RBI officials to discuss banks' bad loans today

FM Arun Jaitley will meet senior Reserve Bank of India (RBI) officials in New Delhi on Friday to discuss the issue of banks` non-performing assets (NPAs) or bad loans, according to sources.

Finance Minister Arun Jaitley, RBI officials to discuss banks' bad loans today
Arun Jaitley, Finance and Corporate Affairs Minister, Government of India. Image Source: IANS
Written By: IANS
Updated: Fri, Mar 10, 2017
10:33 am
New Delhi , IANS
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Finance Minister Arun Jaitley will meet senior Reserve Bank of India (RBI) officials in New Delhi on Friday to discuss the issue of banks` non-performing assets (NPAs) or bad loans, sources said.

The magnitude of the problem can be guaged from the NPA figures of state-run banks, which at the end of the current fiscal`s second quarter (Q2) that ended in September, rose to Rs 6.3 lakh crore, as compared to Rs 5.5 lakh crore at the end of the first quarter (Q1).

ALSO READ: RBI's Viral Acharya says immediate need to resolve bad loans

RBI Deputy Governor Viral Acharya has suggested forming of a Private Asset Management Company (PAMC) and National Asset Management Company (NAMC) to tackle the bad loans issue.

As per the plan, the banking sector could be asked to restructure about 50 large stressed assets in sectors like metals, construction, telecom and textiles, by December 31, 2017.

ALSO READ: Further consolidation in PSU banks after improvement in bad loans: FinMin