FM to banks: Act against frauds

New Delhi, September 25

Finance Minister Arun Jaitley today asked public sector banks (PSBs) to take “effective action” in cases of fraud and wilful loan defaults, as he exuded confidence of achieving sustained economic growth rate of 8%.

The growing economy will also help banks grow in strength, he said at the annual review meeting of PSBs here.

Conversely, as the lifeline of the economy, banks would need to build their strength to support the lending needs of a growing economy, he added, according to an official release.

“At the same time”, he exhorted the banks “to ensure all steps at their end to ensure clean lending and effective action in cases of fraud and wilful default, to justify the trust reposed in banks. Banks must strive to be seen always as institutions of clean and prudent lending”.

Meanwhile, he said bad debts or NPAs in the banking system are on the decline as recoveries of unpaid loans have picked up.

Speaking to reporters after the annual review meet with top public sector bankers, he said last several years had been challenging for public sector banks as a large amount of lending was held up in NPAs. — PTI