Bad debts declining, PSU banks' loan recovery picking up: FM Jaitley

Financial Services Secretary Rajeev Kumar said banks expect to recover Rs 1.8 trn through IBC and other routes during the current fiscal

Finance Minister Arun Jaitley Tuesday said bad debts or NPAs in the banking system are on the decline as recoveries of unpaid loans have picked up.

Speaking to reporters after the annual review meet with top PSU bankers, he said last several years had been challenging for public sector banks as a large amount of lending was held up in NPAs.

But after the Insolvency and Bankruptcy Code (IBC) came into force, which calls for an auction of assets of loan defaulting entities, recoveries have picked up.

Recoveries are better, the lending ability of banks is much better and to top it all credit growth