Arun Jaitley on bad debt, PSU banks; 5 points

ZeeBiz WebTeam | Sep 25, 2018, 07:28 PM IST

Finance Minister Arun Jaitley has said that bad debts or NPAs in the banking system are on the decline as recoveries of unpaid loans have picked up, while speaking to reporters after the annual review meet with top PSU bankers. 


Jaitley said last several years had been challenging for public sector banks as a large amount of lending was held up in NPAs. Image source: IANS


But after the Insolvency and Bankruptcy Code (IBC) came into force, which calls for an auction of assets of loan defaulting entities, recoveries have picked up, he added. Image source: IANS


Recoveries are better, the lending ability of banks is much better and to top it all credit growth has significantly moved upwards, the Finance Minister said. Image source: PTI


Jaitley said, "We are passing through a phase of good growth as far as the economy is concerned. Consumption has moved up, and therefore the banking activity is bound to pick up." Image source: Reuters