New Delhi: Finance Minister Arun Jaitley will chair a high-level meeting with Reserve Bank authorities on Friday to address the issue of non-performing resources in the managing an banking division.
The meeting, which will likewise be gone to by Financial Services Secretary Anjuly Chib Duggal, will talk about methods for determination of focused on resources direly, sources said.
While Chief Economic Advisor Arvind Subramanian had recommended setting up of a terrible bank to manage the issue of non-performing loans, Reserve Bank Deputy Governor Viral Acharya had glided the twin idea of Private Asset Management Company (PAMC) and National Asset Management Company (NAMC) for determination of focused on resources.
As on September 30, 2016, net NPAs of public sector banks rose to Rs 6.3 lakh crore as against Rs 5.5 lakh crore toward the finish of the June quarter.
This works out to an expansion of Rs 79,977 crore on a quarter on quarter premise.
A month ago, Subramanian had said setting up a state-possessed asset recreation organization (ARC) or bad bank to manage mounting NPAs is picking up footing and should be made rapidly.
The PAMC arrange, as recommended by Acharya, could be for parts, for example, metals, development, telecom, and materials, where the advantages will have monetary incentive in the short run.
According to the arrangement, the keeping money division might be gotten some information about 50 extensive focused on exposures in these segments by December 31, 2017.
The NAMC plan could be feasible for segments where the issue is not simply of overabundance limit but rather of monetarily unviable resources in the close term.