Finance Minister Arun Jaitley is slated to meet heads of PSU banks on June 12 to discuss the NPA issue and the steps being taken by them to expedite recovery of bad loans that have hit unacceptably high levels. Apart from financial performance review, the meeting will take stock of status of stressed assets and various measures taken to clean up balance sheets of the banks so that they can start lending, sources said. Non-performing assets (NPAs) of public sector banks (PSBs) have gone past the Rs 6lakh crore mark, the bulk of which are in sectors such as power, steel, road infrastructure and textiles.
The scheduled meeting of June 12 will discuss the current status of stressed assets and pending cases before the joint lenders’ forum (JLF), the sources said. Besides, various measures taken by banks on the NPA recovery, turnaround plan and ambitious targets of various lenders will be discussed.
Stock prices on the mend, the meeting will also discuss ways in which PSBs can tap markets to raise funds and ease the pressure on the exchequer of pumping in capital as per the Indradhanush plan.
The meeting assumes significance as it will be the first after promulgation of the ordinance amending the Banking Regulation Act, 1949, earlier this month.