Bad loan recovery top priority for Government: Rai
05/08/2016 09:57
Banks Board Bureau chairman Vinod Rai has said that recovery of bad loans is on the top of the government's agenda before going ahead with the consolidation of public sector lenders. Commenting on the issue, Banks Board Bureau chairman Vinod Rai told the media, "Recovery is absolutely on top of the agenda so that the lending process can start again. Just now banks are engaged in resolution of their stressed assets. So what we are proposing to do is to resolve that (bad loans issues) quickly first because we do not want to saddle banks with greater issues." “The gross non-performing assets of scheduled commercial banks rose to 7.6 per cent in March 2016 from 5.1 per cent in September 2015. The consolidation of banks is not a small issue and it requires a huge amount of human resources,” he added. As per reports, the Government will push for consolidation of public sector banks once they are recapitalised and strengthened.
