FICCI to take strict actions against wilful defaulters

The industry proposed joining hands with banks to address problem of rising NPAs in the banking system

To address the problem of rising NPAs in the banking system, FICCI's National Executive Committee passed a resolution that the Industry should join hands with banks for evolving workable solutions that are both remedial and preventive in nature.

The Federation of Indian Chambers of Commerce and Industry (FICCI) is of the view that stressed assets in the banking system have different underlying factors and therefore need to be dealt differently on a case by case basis.

"Projects which have been affected owing to cyclical or global factors or where the project viability has suffered owing to policy / procedural impediments require support and restructuring," said FICCI President, Harshavardhan Neotia.

However, in case of projects where mismanagement on part of the promoters can be ascertained, promoters should be asked to bring in extra contribution by way of equity failing which the asset may be taken up for resolution through any of the available or new institutional mechanisms.

"Cases of 'wilful default' should be dealt with in a firm manner. The rules laid down for 'wilful default' should be strictly followed," added Neotia.

A strong banking sector is imperative for robust economic growth of the country and all stakeholders should work in a manner that the health of this sector is restored.