Finance Minister Arun Jaitley has said that the government is willing to consider sectoral interventions to stressed sectors such as steel and aluminum at the second-quarter performance review meeting of public sector banks (PSBs). There were discussions on banks that are facing difficulties on loan quality front. Jaitley said “Results will not come overnight. The problems of each sector have to be addressed separately. The series of steps announced by the RBI will help improve the asset quality situation. The government on its part has also been taking proactive steps in certain sectors”.
Expressing confidence, Jaitley said that asset quality of the PSBs would improve considerably in a reasonable time on the back of a series of steps announced by the RBI and being implemented by several banks. Further, he said that part of the problem of the “unacceptable level of NPAs” could be attributed to the “pressures of the past”, which need to be removed.
Highlighting willful defaulters and banks’ willingness to take action, Jaitley asserted that PSBs already had the required “authority” and “autonomy” to effectively deal with each of their debtors. He further stated that the ability of banks to get failed borrowers to exit will increase if the bankruptcy law gets enacted in Parliament soon