Govt playing role of facilitator to help PSBs: Piyush Goyal

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Two subcommittees formed to study the possibility of creating an asset reconstruction company or asset management company to support resolution of NPA

AMN / NEW DELHI

Finance Minister Piyush Goyal has said, government is playing a role of facilitator to engage in discussions and bring out new ideas on the table to help Public Sector Banks to ensure viability and successful operations.

Briefing media in New Delhi after meeting heads of 13 public sectors banks,last evening Mr Goyal said, two subcommittees were formed to study the possibility of creating an asset reconstruction company or asset management company to support resolution of Non Performing Assets.

He said, another team will discuss various aspects of credit flow, particularly to MSMEs, which is also a very critical focus area of the banking system and economy. Mr Goyal informed that all the banks have collectively decided that in two stages they will take up the credit needs of genuine, deserving, well performing and good companies.

The Minister further said that an uptick of demand is has been seen in almost every sector which the banks believe is a good opportunity. He further said that the bankers have decided that they will do a creditors agreement or arrangement amongst the bankers so that earlier problems which were faced in consortium lending can be ironed out more smoothly.

He said, the State Bank of India has offered to support the smaller banks who may not have robust risk assessment practices or credit assessment practices through its high-quality capabilities.