Govt will set up system to tackle bad loans: Piyush Goyal

Mumbai: Union Railways and Coal Minister Piyush Goyal, who is also holding the finance portfolio for a brief period, said on Friday the government is committed to supporting all state-run banks and will set up a dedicated mechanism to tackle bad loan issues.

Speaking on the issue of Non-Performing Asset (NPA), the interim finance minister said all bankers are eager to set up a mechanism for faster resolution of stressed accounts.

“A presentation was made by SBI based on several years of experience and I am given to understand that all the bankers are now wishing to set up such a mechanism which will enable faster resolution of stressed accounts in a very transparent manner and speedy manner,” said Goyal.

Addressing the heads of public sectors banks (PSBs) here, Goyal said the State Bank of India (SBI) has over the years had a very robust mechanism by which faster credit decisions are taken in a transparent manner.

He added, “There is also a proposal that some of the banks may consider having oversight committees, comprising of retired judges, vigilance officials, regulators and bring in some external expertise to help faster decision making in the Indian banks.”

Goyal has been given an additional charge of finance ministry as Arun Jaitley is recovering after undergoing a kidney treatment at Delhi’s All India Institute of Medical Sciences. (ANI)