Jaitley, RBI to discuss NPA issues today

 With growing public sector bank NPAs making the twin balance sheet problem grave, Finance Minister Arun Jaitley will take stock of non-performing assets on Friday along with the Reserve Bank of India.

Jaitley is expected to interact with RBI Governor Urjit Patel and other officials through video conferencing on how to fast track servicing of bad loans.

Twin balance sheet problem refers to overleveraged and distressed companies and rising NPAs in public sector bank balance sheets. According to the Economic Survey, the issue is important because it is holding up private investment in India.

Chief Economic Adviser Arvind Subramanian has suggested creating of a bad bank to take over bad loans of different sectors and free up banks from those NPAs.

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