Bad loans dropped to Rs 9.34 lakh cr in FY’19: FM
Finance Minister Smt. Nirmala Sitharaman, pointed out that thanks to the steps taken by the government, the total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crores in FY 2018-19. These steps included the Insolvency and Bankruptcy Code (IBC), which has fundamentally changed the creditor-borrower relationship. It took away control of defaulting companies; debarred willful defaulters from participating in the resolution process; & raisedfunds from markets. The government also designed a comprehensive 4R’s strategy for transparent recognition of non-performing assets (NPAs), resolution and recovery of value from stressed assets, recapitalizing public sector banks (PSBs) and restructuring PSBs. It also set up the National Financial Reporting Authority,strictly monitored high-value loans and initiated board-approved loan policies in public sector banks.