Talking to the Press, Jaitley referred to the issue of rising NPAs (non-performing assets) in the banking sector. Jaitley said NPAs are an area of real concern. “The private sector investment and performance both have to pick up. This would ease the pressure of bad loans.”
As per an RBI data, gross NPAs of PSU banks have gone up to Rs. 2,60,531 crore as in December 2014.
The top 30 defaulters are sitting on bad loans of Rs 95,122 crore and this is more than one-third of the entire non-performing assets of public sector banks. Jaitley said the government has allowed banks to lower government stake to 52 per cent, which in turn would enable them to raise capital from markets.