FM discusses steps to control NPAs with PSU bank chiefs

Asks them to ensure smooth credit flow to projects

Finance Minister Arun Jaitley met PSU bank heads today and discussed ways to bring down Non-Performing Assets (NPAs).

"Over the last 2-3 years, on account of the slowdown, one area of concern is that NPAs have risen. Therefore what proactive steps need to be taken to ensure that NPAs come down was discussed," Jaitley said.

He was speaking to reporters after the meeting with PSU bank chiefs here.

Jaitley also asked banks to take steps to ensure smooth credit flow to projects.

"We have suggested to the banks that proactive steps (be taken) in supporting various projects so that credit offtake in these projects takes up in a big way," he added.

According to a report by research firm ICRA, PSU banks' gross NPAs are estimated at 4.4-4.7% as on March 31, 2015, as against 4.4% as on March 31, 2014 and 4.6% at the end of June, 2014.