PSU banks, from 2008 to 2014, engaged in indiscriminate lending: Jaitley

Union Finance Minister Arun Jaitley on Tuesday said that the public sector banks, from 2008 to 2014, engaged in indiscriminate lending, in an apparent attack at the then ruling alliance - the United Progressive Alliance (UPA).

"At one stage, the public sector banks were involved in indiscriminate lending. The data from between 2008 to 2014, showcases lending in an indiscriminate manner," Jaitley said, while addressing the media.

He further said that a major chunk of lending during that period, today, makes up for the NPS.

"The stressed assets and the NPS had been unspecified for a long time and the NPS was kept under the carpet. The Capital Adequacy was eroded because of them," he added.

Jaitley also announced an unprecedented PSU banks recapitalisation program of Rs. 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support.

The finance minister indirectly targetted the Congress and the UPA Government many times, in his address, including when he teared into Rahul Gandhi over his 'Gabbar Singh Tax' jibe.

"People, who are used to 2G, coal block scam, will have an issue with a legitimate tax," Jaitley said.

The Congress vice-president had, yesterday, called the GST "Gabbar Singh Tax", while addressing a rally at the 'Navsarjan Janadesh Mahasammelan' in Gujarat's Gandhinagar.

Meanwhile, speaking about the current economic situation, Jaitley said that India has remained as the world's fastest growing economy for the past three years, thus maintaining very strong economic fundamentals with a progressive growth story.

"There are strong macroeconomic fundamentals," he added.

"We will report on the situation as they develop. A lot of internal meetings on the state of economy internally within the ministry were held. Discussions were also held with the prime minister. But India has remained one of the fastest growing economies in the world," he concluded.