Nirmala Sithraman says many decisions announced last week already rolled out

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Updated: August 30, 2019 4:50:27 PM

FM Nirmala Sitharaman, economy, weak economy, slowdown, low demand, govt steps to boost economy

In a press conference held on Friday evening, Finance Minister Nirmala Sitharaman painted an improving scenario of the public sector banks. Addressing a press conference after meeting with the heads of the PSU banks, she said that the government’s intention is not just to give capital but to provide good governance. She said that eight PSU banks have launched the repo rate linked loans in the last one week and documents are being returned in the 15 days period after the loans are being repaid. Resolution of stressed assets are happening very clearly under IBC and to avoid the incidence like Nirav Modi, swift messages have been linked with the central banking system (CBS). 

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Nirmala Sitharaman informed that the loan recovery is at the record level and provisional coverage ratio has also improved. Further, the gross NPA have substantially come down from Rs 8.65 lakh crore in December 2018 to Rs 7.9 lakh cr now. She underlined that 6 out of 18 PSU banks showed enhanced profitability in the second half of the previous financial year, whereas, 14 out of 18 such banks registered enhanced profitability in Q1 FY20. Also, in the retail loan sector, there has been an increase of 20.5 per cent on-year in June 2019, she added. 

Also Read: Mega PSU bank merger: PNB, OBC, United Bank to be merged to create India’s second largest govt bank

Finance Minister Nirmala Sitharaman announced a host of reforms including partially doing away with the additional surcharge on FPIs introduced in the budget. Measures related to angel tax, bank recapitalisation and income tax notices were also included in the major announcement. The government had also announced that no angel tax would be imposed on startups and their investors if registered with the DPIIT. The government also announced that it will release upfront the Rs 70,000 crore of funds under bank recap plan announced earlier in the budget.

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