Ministry of finance will soon be inspecting Public Sector Banks (PSBs) and their level of readiness against Non-Performing Assets (NPAs).
According to a senior official from the finance ministry, a meeting will be called to analyse the measures readied by the state-run lenders to curb the menace of bad loans.
All PSBs were directed to submit a detailed proposal to their respective board for approval.
“We are going to take an assessment of the various initiatives that were proposed under EASE, directions for tackling bad loans were a part of this agenda,” he said.
The inspection is proposed to check the level of activeness in PSBs post the disbursement of Rs 88,000 crore fund under the Rs 2.1 lakh crore bank recapitalisation plan.
The level of NPAs in PSBs inflated to Rs 7.77 lakh crore in December 2017 as compared to Rs 2.67 lakh crore reported during March 2015.
As of now, there are 11 banks under the Reserve Bank of India’s prompt corrective action (PCA) plan.
