To strengthen the PSU banking system in the country and faster NPA resolutions, Finance Minister Piyush Goyal today said banks will soon create a dedicated mechanism for managing stressed accounts.
"The government is looking to appoint head of five PSU banks in the next 30 days," Piyush Goyal said in his first press meet as Finance Minister.
Ruling out any further capital infusion in PSU banks, he said the banks will set up a dedicated mechanism to tackle bad loan issues and Power and Finance ministry will soon discuss 11 big stressed assets.
"I have discussed improving credit flow to strengthen Indian economy while mitigating risk flow associated with that," said Goyal after meeting with PSU bank chiefs.
On NPA issue, Goyal said all bankers are willing to set up a mechanism for faster resolution of stressed accounts. "Some of the banks may also consider setting up oversight committee -- bring in external expertise to help faster decision making," he said.
He also said that banks have come up with a strategy to deal with accounts which are facing restrictive covenants due to exposure to PCA banks.
"A committee has been set up under the chairmanship of Sunil Mehta, non-executive chairman of PNB, to deliberate whether it is worth considering setting up of an asset management company to deal with assets having exposure to several banks. The committee will also consider if setting up of an ARC or AMC is good for the banking system," said Goyal.
Piyush Goyal has been given additional charge of Finance Ministry as Arun Jaitley was undergoing treatment.
"The government is looking to appoint head of five PSU banks in the next 30 days," Piyush Goyal said in his first press meet as Finance Minister.
Ruling out any further capital infusion in PSU banks, he said the banks will set up a dedicated mechanism to tackle bad loan issues and Power and Finance ministry will soon discuss 11 big stressed assets.
"I have discussed improving credit flow to strengthen Indian economy while mitigating risk flow associated with that," said Goyal after meeting with PSU bank chiefs.
On NPA issue, Goyal said all bankers are willing to set up a mechanism for faster resolution of stressed accounts. "Some of the banks may also consider setting up oversight committee -- bring in external expertise to help faster decision making," he said.
He also said that banks have come up with a strategy to deal with accounts which are facing restrictive covenants due to exposure to PCA banks.
"A committee has been set up under the chairmanship of Sunil Mehta, non-executive chairman of PNB, to deliberate whether it is worth considering setting up of an asset management company to deal with assets having exposure to several banks. The committee will also consider if setting up of an ARC or AMC is good for the banking system," said Goyal.
Piyush Goyal has been given additional charge of Finance Ministry as Arun Jaitley was undergoing treatment.