The health of public sector banks, particularly in relation to the carry-over of past problems like the unacceptable level of NPAs (non-performing assets) and bad loans was discussed, Arun Jaitley told reporters here after a meeting with heads of Private Sector Banks (PSBs).

"The problems continue but the banks' NPAs situation will improve," he said.

He informed the media about the following points:

1. After the reforms in the power sector are worked out, the stress posed by discoms  (distribution companies) would give way. The highways sector has started moving.

2. He informed media persons that the bankers had offered specific suggestions regarding the steel and aluminium sectors.


                                   Arun Jaitley with Jayant Sinha and Anjali Duggal

3. Problems of the steel sector and steps taken by the government in this area were discussed. The secretary, department of financial services will coordinate steps with the department of revenue to take further steps for the banks.

4. A series of steps suggested by the Reserve Bank of India (RBI) which the banks are implementing will ease the situation. Additionally, the government has been proactive in solving problems of various sectors.

5. Allocation of Rs.7,940 crore in the budget has been done for the recapitalization of PSBs during this financial year.

Also read:
Banks have all powers to deal with wilful defaulters: Arun Jaitley


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