×
E-PAPER ▾

E-paper

Business

Working on plan to rebuild capacity of banking sector, says Jaitley

| | Washington

Finance Minister Arun Jaitley has said the Government, faced with a ‘catch-22 situation’ over the issue of non-performing assets, is working on a plan to rebuild the capacity of India’s banking sector so as to support growth. Jaitley, who is on a week-long visit to the US to attend the annual meetings of the International Monetary Fund and the World Bank, also said that reforming the banking system is the top agenda of the Government.

“Today, with global growth turning around, we are working to put up an actual plan in play to deal with the banking situation, which is top of our agenda. We need to rebuild the capacity (of the banking sector),” Jaitley told students of Harvard University in Boston. “I inherited a banking system whose monies were lying in non-performing assets. Are unable to service the debt. We are faced with a catch-22 situation as to how do we improve the capacity of the banks so that they can support growth,” he said. So, all these factors together adversely impacted the private sector, the Minister said.

Gross non-performing assets (NPA) of the public sector banks rose to Rs 6.41 lakh crore at the end of March 2017 as against Rs 5.02 lakh crore a year ago, according to Finance Ministry data. Jaitley, however, also noted that bigger enterprises did not suffer, because they approached the bond market and foreign funding which were available at much cheaper rates. They did not had to go to th Indian banks. It is small and medium-sized enterprises that need the support of the banking system, Jaitley said, noting that SMEs are huge job creators.

“That's where the problem really is as far as the private sector is concerned,’ Jaitley said. Responding to a question, Jaitley refuted the notion that private sector is not expanding. Jaitley asserted that the expansion of the private sector was ‘limitless’. “Expansion of private sector is taking place. The last quarter, which was otherwise not encouraging, indicated that the investment graph itself has turned positive. A lot of investment is taking place,” he said.  

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

My father lived, died for India, says Rahul

15 Jul 2018 | PTI | New Delhi

Amid row over alleged use of derogatory language in a web series while referring to former Prime Minister Rajiv Gandhi, Congress chief Rahul Gandhi on Saturday said the BJP and the RSS believe that freedom of expression must be policed, while he regards it as a fundamental democratic right. “My father lived and died in the service of India...

Read More

STATE EDITIONS

View All

Demolition continues, encroachment in gated colonies to be razed too

19 Jul 2018 | PNS | Dehradun

The court ordered anti-encroachment drive continued in Dehradun with 280 encroachments being demolished and 185 being marked on Wednesday. A total of 2196 encroachments have been demolished, 4674 have been marked and 88 buildings have been sealed so far...

Read More

Page generated in 0.2461 seconds.