He is sure growth will accelerate in the coming month against the backdrop of a projected good monsoon and consequent push to rural demand and a revival in private investment.
Jaitley is also optimistic that the government's consistent reforms agenda will also add to the growth momentum.
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Speaking at an Indian Women Press Corps event here, he said further: "With the provisioning in the last few quarters taking place, at least transparency has come about. You cannot conceal the balancesheets of the banks. So, whatever was the actual position, it has peaked and all the steps (are) taken as far as different sectors are concerned."
Once the sectoral balancesheet improves in some of the sectors, "I think it will start tapering down and therefore, the peaks probably have been reached or thereabout".
Jaitley listed out six stressed sectors, including steel, highways, power and sugar.
Gross NPAs of public sector banks (PSBs) went up to 7.30 per cent as of December 2015, from 5.43 per cent as of March 2015. In absolute terms, the reading increased to Rs 3,61,731 lakh crore in December, from Rs 2,67,065 lakh crore in March.
On growth, Jaitley said factors like high public spending, FDI and improved urban demand have led to a GDP growth of 7.5 per cent in a world which is moving at 3 per cent.
Going forward, he said, "... If you look down the tunnel, a moderate level of oil price range-bound, monsoon and the consequential impact of reduced sectoral stress in steel, highways, sugar, and power and a plausible impact over the next few quarters over balancesheet of banks, these could be a positive and therefore can add to your present growth."
After two successive years of deficient monsoon, he said the prospects for this year seem positive.
"We have to see actual rainfall and that will not only add to agriculture, but also to rural demand. Therefore, rural demand has the capacity to push up private sector because of increased demand itself. So far, (monsoon) indications are positive," he said.
On continuation of reforms agenda, the minister said there are 4-5 proposals pending and a few more are in the offing.
"So far we have maintained in the last two years consistently in one direction our ability to reform. Therefore, the world continues to watch us with crossed fingers as to whether that appetite continues or not," he said.
"Some of the new proposals are put in the pipeline. Having cleared the Bankruptcy (Code), I have at least 4-5 (reform) proposals pending and 1-2 more which we are working on.
As for disinvestment, Jaitley said its scope has been
expanded from routine divestment to buyback and strategic sale.
"The DIPAM has started this process... When the markets are low, you can always have a buyback. Because a lot of these units are very cash-rich and they can afford a buyback. Thereafter, you can have a strategic sale," he said.
He disclosed that he had a meeting severals months ago with ministries of tourism and civil aviation in connection with strategic disinvestment.
"In some of the hotels, state governments also have a stake... And some which are jointly held by the state governments are not exactly in the best of health," he said.
Jaitley said it is waiting for PSUs to get on to the idea floated by the government whereby asset segregation and sale take place.
"Globally, asset recycling adds to a national resource. You segregate a functional asset and you can sell off that asset and with the resource that comes in, that resource is recycled by the PSU to create a fresh asset. So you will be able to duplicate your resources. This can happen where there are multiple units some PSUs hold," he explained.
Asked whether companies have approached the government for resolving pending tax cases under the one-time dispute resolution window, Jaitley said: "... My approach was to clean up the desk and you cannot allow past disputes to haunt us."
The government has placed both options on the table for companies to choose from -- whether they want to resolve through a judicial process or through a settlement which the legislation mandate permits.
He also made it clear that those who have not disclosed their undisclosed foreign assets will regret their decision.
The government had last year come out with a three-month compliance window for foreign black money holders. A total of 644 declarations involving an amount of Rs 4,164 crore have been made under the window provided in the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The government in 2016-17 Budget has announced a four- month compliance window beginning June 1 for domestic taxpayers to declare undisclosed income or assets and clear up their past tax transgressions by paying tax, penalty and surcharge totaling 45 per cent of the undisclosed income.
"Those who don't use it and are subsequently found to be in possession will certainly regret," Jaitley warned.