Bad assets a big problem: Jaitley

Pune, 

Finance Minister Arun Jaitley on Saturday termed the level of bad assets in the system as “unacceptable” and promised more autonomy for state-run banks to run business with a “commercial mindset”.“There are unacceptable levels of non-performing assets (NPAs) in some cases and the banks have to be given a sufficient amount of leeway … to deal with commercial issues with a commercial mindset,” Jaitley told reporters on the sidelines of a two-day bankers’ retreat here.The Finance Minister said there was a need to bring about changes in many areas in state-run banks, including giving “far greater autonomy” and allowing them to hire the best talent.The two-day banking conclave, which started on Friday, is being held at a crucial time when India is moving towards accelerating the pace of growth, he said.The government, which a majority owner in 27 public sector banks, that control over 70 per cent of the system, wants to hear the problems plaguing the sector from the bankers and external experts as “they know the best where the shoe pinches,” he said. “I am certain this conference is going to pave a way for a new roadmap,” he said. The meeting comes at a time when the gross NPA in the system has touched 4.5 per cent in September 2014, and days after strong commentary from RBI about state-run lenders lagging behind their private sector rivals on asset quality management. — PTI

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