Highlighting the problem of banks? rising non-performing assets (NPAs), finance minister Pranab Mukherjee on Wednesday asked debt recovery tribunal officers to help in freeing up the resources stuck in these bad assets. Mukherjee was addressing a meeting of chairpersons of Debt Recovery Appellate Tribunals (DRATs) and presiding officers of Debt Recovery Tribunals (DRTs). ?The banks are facing the problem of increasing NPAs, which needs to be addressed on priority,? Mukherjee said, according to a statement issued by the finance ministry.

The government has advised banks to closely monitor NPAs. Gross NPAs of nationalised banks increased by 50 bps as on March 31, 2011 to 2.4% as on December 31, 2011, while those of SBI Group increased sharply by 130 basis points to 4.3% from 3.0% during this period, ICRA said. Gross NPAs of private banks moderated to 2.1% from 2.3% during the same period, it said.

Rating agency Icra in a recent report projected further deterioration in the quality of banks’ credit portfolio due to structural weaknesses in certain sectors and an increasing proportion of restructured loans.

The meeting was attended by the department of financial services secretary DK Mittal and other senior officials of the finance ministry. Mukherjee said about 67,000 cases of debt recovery were pending in the tribunals as on March 31, 2012.

Slowing GDP growth, high current account deficit and elevated fiscal deficit were a matter of great concern but there is no need to press the panic button, the minister said. GDP growth fell to a nine-year low at 5.3% in the January-March 2012 quarter, and to 6.5% for the fiscal year 2011-12. Current account deficit stood at a high 4.1% of GDP in 2011-12, while fiscal deficit at 5.8% in 2011-12. Mukherjee said the economy’s fundamentals were strong, and a reversal of tight monetary policy will help in boosting investments. He said DRTs can ensure the effective and speedy recovery of public money, as the regulations the Tribunals to decide the case in 180 days. DRTs have not been able to adhere to this time line, he stressed.

Mukherjee said that there is a need to look into the territorial jurisdiction of the existing DRTs, to spread their burden equally. If considered absolutely necessary, the setting-up of additional Tribunals can also be considered, he added.