Vice President M Venkaiah Naidu Thursday said the banking system is facing problems due to "mindless lending earlier" and banks should learn from their experiences so that such issues do not reoccur.
Participating in the platinum jubilee celebrations of the Tamil Chamber of Commerce here, he said, "The banking system is going through a transformation. You are also seeing the problems that have arisen due to mindless lending earlier."
"Now, you are all seeing how the money is getting collected. We have to take steps. Banks must learn from their experience of what happened and see to it that such things do not reoccur," he said.
The aggregate gross NPAs of commercial banks increased from Rs 3,23,464 crore, as on March 31, 2015, to Rs 10,35,528 crore, as on March 31, 2018.
Naidu suggested that India must take initiative and the entire global community must come together to enable automatic exchange of information with regard to bank accounts in different countries.
"The entire world should come together and have agreements so that fraudsters are taken to task. This is very important in view of the recent experience we had," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)