After the government approved an ordinance to amend the Banking Regulation Act to tackle the issue of non-performing assets (NPAs), which will allow the Reserve Bank of India (RBI) to take tough action against loan defaulters, Finance Secretary Ashok Lavasa has expressed hope that amendments to the Banking Regulation Act will help in faster resolution of bad loans, he said ‘It is not possible for me to put down a number on how non-performing assets or NPAs will go down but certainly we feel that these changes will make the system more effective in handling the bad loans’.
Lavasa further said that they will be able to reach resolution in many of the cases, on the back of professionalism that exists in the country's banking system and with the participation of the promoters themselves. He also said that the amendments would enable regulator Reserve Bank of India and lenders to take effective steps to deal with problem of NPAs and the government will share details after the ordinance is notified.
He added that one should not judge the capacity that is there in the market because people do have appetite for investment in the Indian market. He said that India is probably one of the best destinations for investment at this point of time. He also said that the NPA situating has not worsened in the recent past and there has been marked improvement in some of the infrastructure sectors like power and road.
