The banking industry, armed with the new securitisation law, is looking at reducing non-performing assets (NPAs) by about Rs 6,000 crore during the current fiscal and streamlining operations to improve profitability.
Nationalised banks and financial institutions had sticky assets of about 75,000 crore at the end of the last financial year. Nationalised banks alone have bad loans which account for 14 per cent of their advances in gross terms and net NPAs at 7-8 per cent amounting to nearly Rs 60,000 crore.
The drive to improve financial health is also a precursor to the consolidation among public banks through mergers and acquisitions expected in two years, Dalbir Singh, Indian Banks
