Finance minister Nirmala Sitharaman has urged public sector banks (PSBs) to act swiftly when it comes to fruad cases and against wilful defaulters. According to sources, the FM told them to reduce bad loans and take steps to accelerate growth momentum.
Banks have written off ₹11.17 lakh crore bad loans from their books in the last six years till the financial year 2021-22.
The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off.
In a recent meeting with heads of PSBs, the finance minister urged them to focus on having robust risk management practices and mitigate cyber security risks.
Also read: Indian economy has moved away from twin-balance sheet problem: Sitharaman
During the meeting, it was also emphasised that banks should follow a strong internal audit framework and adherence to caveats of internal policies, sources said.
Some of the challenges highlighted during the meeting included the declining share of market share in terms of advances, and low-cost deposit mobilisation.
It was also pointed out that PSBs should…
