Our action against defaulters helping banks cut NPAs: FM Sitharaman

Finance minister Nirmala Sitharaman on Tuesday asserted that the government is tough on defaulters, particularly fugitives, getting back their assets through legal process and giving it to banks because of which their bad assets have come down.  

"We have ensured that we pursue every case and get the money back to the banks, otherwise NPAs (non performing assets) would not have come down," she said at a press conference during her two-day visit to Jammu and Kashmir.

She said this is an ongoing process. "We should not let go any defaulter and partic­ularly those who have fled the country and we will get their assets through courts and give it to banks," the finance minister said.

To a query over Vijay Mallya and Nirav Modi, Sitharaman said there are many more names in the defaulters list. "There are many more names you can add if you want," she told reporters.

Last week, prime minister Narendra Modi had said banks have managed to recover more than Rs  5 trillion from defaulters. CARE Ratings in review of Q2FY22 results of 23 banks said the asset quality situation of the banking system does indicate a gradual improvement in the NPA ratio in September.