The banking ordinance reflects commitment of the government to deal with the NPA problem, and the banking system should move quickly to take benefits of the enabling provisions, SBI Chairman Arundhati Bhattacharya said today. Amendments to the Banking Regulations Act, coming on the heels of the enactment of Insolvency and Bankruptcy Code and amendments to SARFAESI and Debt Recovery Tribunal acts show government’s firm commitment, she said.
“It will help in finding a satisfactory solution to the NPA resolution problem. The country and its banking system need to move quickly and decisively to take benefits of these enabling provisions,” Bhattacharya said. Industry body Ficci said the passage of Banking Regulation (Amendment) Ordiancne, 2017 is a step forward for resolving NPA menace in a time bound manner.
“In all cases where there is a clear indication of wilful default or malfeasance, the law of the land should prevail and firm action should be taken,” Ficci Secretary General A Didar Singh said.
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IndusInd Bank promoter and Hinduja Group’s Head of Corporate Performance Management Function R Kannan said this will enable RBI to consolidate accounts of one borrower across all banks and see the way forward.
“At present, individual banks are not taking interest in the light of likely future investigations on the resolution procedures adopted. Once the central bank is involved as part of the process, the procedures for resolution are likely to become more simple and it will be a collective effort from all to recover NPAs,” Kannan said.