In wake of mounting bad loans and banking frauds, top officials of both public and private banks will brief a parliamentary panel on Monday.
In wake of mounting bad loans and banking frauds, top officials of both public and private banks will on Monday brief a parliamentary panel. The Indian Banks’ Association (IBA) officials have been called today to appear before the Parliamentary Standing Committee on Finance headed by Verappa Moily, according a Lok Sabha bulletin. The association has top officials of all the major banks in the country as its member. The panel will be briefed on the issue of rising non-performing assets (NPAs) and other matters related to banks, Lok Sabha bulletin said.
There will also be discussion on the recent frauds in the banks, PTI reported citing members of the panel. The meeting is being called after the RBI governor Urjit Patel had said the Central Bank did not have adequate powers to deal with public sector banks. The panel has also called Urjit Patel to brief on the same issue later this month. Earlier, Financial Services Secretary Rajiv Kumar briefed the committee about issues concerned with the banking sector.
The 180-day resolution plan for NPAs under the Insolvency and Bankruptcy Code (IBC) was not an adequate window, the bankers appearing before a different parliamentary panel had said earlier. They had also suggested the emphasis should be on restructuring the stressed assets and that referring cases for resolution under the IBC should be the last option.
Former prime minister Manmohan Singh, who is also a member of the committee, may also attend the meeting, PTI reported. According to official data gross NPAs of state-owned banks had crossed Rs 7.77 lakh crore at the end of December 2017.
There has been 450 percent rise in gross bad loans of the banks as figures shows bad loans surged from Rs 19,800 crore at the end of financial year 2013-2014 to Rs 109,076 crore at the end of March 2018, according to The India Express report.