Concerned over NPAs crossing Rs 7 lakh crore, the finance ministry has asked public sector banks (PSBs) to take swift and firm action to deal with the bad loan problem, a banker said. The issue came up for deliberation during the two-day PSB Manthan ended on Sunday during which the finance ministry expressed urgency to deal with the mounting non-performing assets.
One of the focus areas of the meeting was effective monitoring to ensure better recoveries from the stressed assets, a senior public sector banker said.
During the 2-day meeting, the banker said it was also discussed as to how a better value can be realised from the resolution process of NPAs. Banks were also advised to look at cases where settlement can be done as part of lowering the burden.