Little over a month after the Reserve Bank of India red-flagged banks for adopting new strategies to evergreen loans and conceal harassed accounts, Finance Minister Nirmala Sitharaman on Thursday suggested public sector banks to make sure truthful and clear recognition of non-performing belongings (NPAs).
At a gathering to assessment public sector lenders’ efficiency in 2022-23, Ms. Sitharaman mentioned banks ought to periodically assessment NPAs internally to make sure that there is correct recognition and reporting of the harassed belongings.
While the lenders’ chiefs assured the federal government that their banks’ monetary well being was robust and had been “comfortably placed to withstand any macroeconomic shock”, the Minister emphasised “adherence to the regulatory framework by focusing on risk management, and diversification of business base”, the Finance Ministry mentioned in a press release.
“The business outlook is progressively improving in spite of the headwinds from recent global banking sector developments,” the Ministry mentioned, including that Ms. Sitharaman had additionally urged lenders to scale up their deposits and instil an environment friendly and optimum Asset Liability Management system.
