Banks told to cut NPAs

In the wake of mounting non-performing assets (NPAs) of the banks and financial institutions, Finance Minister Pranab Mukherjee on Monday asked them to bring it down to maintain their credit worthiness and a sound financial health.

“I urge you to deploy various tools at your command for containing and rolling back NPAs in accordance with the guidelines of the Reserve Bank of India,” he said addressing the CEOs of public sector banks and financial institutions.

Deposits of public sector banks (PSBs) grew by 14.4 per cent to over Rs 50 lakh crore in 2011-12 year-on-year, while advances increased by 17.7 per cent to over Rs 40 lakh crore showing a stark mismatch.

Mukherjee also commended public sector banks for their good work in extending banking facilities to over 70,000 villages having population of 2,000 and above in the last two years. Over 3 crore new bank accounts have been opened in these villages.

With the economy slowing down much below expectations, Mukherjee said the government was committed to ensuring faster project clearances, attracting new investments, both domestic and foreign, and fixing regulatory issues to boost investor confidence in the India growth story.