Top bank officials brief parliamentary panel on NPAs, fraud

RSTV Bureau
Parliament of India

Parliament of India

The Parliamentary standing committee on Finance examined the issues before the Indian banking system, including the rising level of NPAs and stressed assets on Monday. Top officials of public and private sector banks briefed parliamentary committee on finance on non-performing assets and banking frauds.

The Department Related Standing Committee of Parliament on Finance headed by senior Congress leader M Veerappa Moily has been examining the issue for some time which was in spotlight recently, in the wake of the Nirav Modi-Mehul Choki scam involving fraudulent transactions of over Rs 13,000 crore from Punjab National Bank.

The panel raised questions on the non-performing assets (NPAs) and suggested the bankers to unveil a roadmap to arrest burgeoning bad debts and voiced concern over the oprational failure in the PNB fraud  case.

File photo of celebrity jeweller Nirav Modi prime accused behind PNB fraud

File photo of celebrity jeweller Nirav Modi prime accused behind PNB fraud

The meeting was called after the RBI governor Urjit Patel had said the Central Bank did not have adequate powers to deal with public sector banks. The panel has also called Patel to brief on the same issue later this month. The committee was earlier briefed by Financial Services Secretary Rajiv Kumar about issues related to the banking sector.

Earlier, bankers appearing before a different parliamentary panel had said the 180-day resolution plan for NPAs under the Insolvency and Bankruptcy Code (IBC) was not an adequate window.

They had also suggested the emphasis should be on restructuring the stressed assets and that referring cases for resolution under the IBC should be the last option.

Gross NPAs of state-owned banks had crossed Rs 7.77 lakh crore at the end of December 2017, according to official data.

(With inputs from PTI)