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NPA formation showing declining trend in March quarter: Arun Jaitley

LiveMint logoLiveMint 15-03-2017 PTI

New Delhi: The rate of rise in bank’s non- performing assets has slowed down in the March quarter and the steel sector has started showing signs of improvement, finance minister Arun Jaitley said on Wednesday.

The core problem of NPAs is with very large corporates, though few in numbers, which are predominantly in the steel, power, infrastructure and textile sectors, Jaitley said at the Parliamentary Consultative Committee meeting.

“To deal with the NPAs of the banks is a challenging task even though the NPAs have shown a declining trend in the last quarter of the current financial year,” Jaitley said.

He said some corporates have expanded their capacity during the boom period from 2003-2008, but could not face the onslaught of global financial crisis and consequent slow down thereafter.

“The government is taking sectoral specific measures to deal with the problem of NPAs specifically in the resolution of large debts... Steel Sector is on its path of recovery while many decisions have been taken in the infrastructure, power and textile Sectors to resolve their problems,” Jaitley said.

The gross NPAs of public sector banks have risen from Rs5.02 lakh crore at the end of March 2016 to Rs6.06 lakh crore in December 2016. PTI

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