JOIN USFSDC panel to discuss bad loans
A sub-committee of the Financial Stability and Development Council (FSDC) is likely to discuss asset quality of banks, fraudulent scheme, among others, at its meeting on Monday.
“The agenda for the meeting include rising NPA in the banking sector and restructuring of loans” a Finance Ministry official said.
During the meeting, the views of other sector regulators including Sebi (Securities and Exchange Board of India), Irda (Insurance Regulatory and Development Authority) and PFRDA (Pension Fund Regulatory and Development Authority) would also be taken into account.
The FSDC sub-committee, headed by RBI Governor D Subbarao, discusses on a range of issues relating to the financial sector development and stability including issues relating to inter-regulatory coordination. The sub-committee includes financial sector regulators and DEA Secretary.
Concerned over rising bad loans, Finance Minister P Chidambaram in a review meeting with PSU bank chiefs in March this year had asked them to take firm steps against affluent promoters to recover loans from sick companies owned by them. Rising NPAs have emerged as the biggest challenge in the banking system.
Gross NPAs of PSU banks have risen from Rs 71,080 crore as on March 2011, to Rs 1.55 lakh crore as on December 2012, of which corporate accounts constitute 53.68 per cent. Of this, about 172 corporate accounts constitute NPAs of more than Rs 100 crore each at the end of December 2012. The amount involved in such cases is to the tune of Rs 37,194 crore.