Arun Jaitley Asks Banks To Increase Credit Flow And Reduce NPAs

Union Finance Minister Arun Jaitley has asked the public sector undertaking (PSU) banks to increase the credit flow and check the rising non-performing assets (NPAs).

“There is a great opportunity for India to attract foreign investment and a large number of international entrepreneurs are showing their keen interest in India,” the Jaitley said. Banks, on their part, said that the credit growth was slow owing to lack of demand.

“Over the last two-three years, on account of slowdown, one area of concern is that the NPA has risen. Therefore, steps to be taken to ensure NPAs come down have been discussed,” the finance minister said.

Jaitley emphasised that the decision-making process must be guided solely by professional reasons. He also assured banks that the Centre would not interfere in their professional decisions asked them to “act without any fear or favour.”

Financial Services Secretary Hasmukh Adhia also assured banks that the Centre would not influence their professional decisions.