Jaitley says adverse business environment can lead to NPAs, asks industry to be positive and ethical
Finance Minister Arun Jaitley said the industry should have a credible and positive approach, amid rising bad debts and non-performing assets (NPAs).
As the list of wilful defaulters is growing and the limelight is quite on Vijay Mallya, who is under 9000 crore debt, Jaitley said Indian industry is also fighting a major battle for its own credibility and some recent events haven't added to their credibility.
"In this entire debate which is going on non-performing assets, I am quite conscious of the fact that an adverse business environment can lead to non-performing assets. When the cycle reverses, the NPAs can also be reversed but the approach of the leaders of the industry will certainly have to be always positive and ethical because it is that approach which is going to add to their credibility," said Jaitley at the CII Annual session here.
There are about 7,686 wilful defaulters who owe Rs 66,190 crore to public sector banks. Of these, suits have been filed in 6,816 cases and FIR has been lodged 1,669 cases.
Banks have initiated action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi) Act in 584 such cases.
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