The economic slowdown had started much before 2013 but banks continued to pour money into sick firms
The meeting also discussed the problems faced by banks in faster resolution of stressed assets
The Economic Survey 2016-17 has suggested establishment of a 'bad bank' to deal with the NPA issue
The report is jointly penned by Moody's and its domestic arm Icra Ratings.
As on September 30, gross NPAs of public sector banks rose to Rs 6,30,323 crore as against Rs 5,50,346 crore by June end
Gangwar says NITI Aayog has not moved any proposal to create a bad bank to hold the stresses and non-productive assets and loan recovery of banks
NBFCs expected to benefit from move as easing of rules is only for loans less than Rs 1 crore
For now, even as there is ample demand for big-ticket loans, banks are hesitant to open up their purses
Just five sectors contribute 61% of the banking sector's stressed assets - infra, steel, textiles, power, and telecom
He said that it will help the system tide over troubles and also ease pressure on growth capital
The OC has been created to ensure that the entire exercise of NPA resolution is carried out in a transparent and prudent manner
It noted that RBI's tough stance on the cleanup of balance sheets by next March would weigh on banks' asset quality
Overall bank deposits of SHGs rose by nearly 23.79% to stand at Rs 13,691 crore
Rai is chairing the Banks Board Bureau, which is working on ways to address the bad loan issues
RBI had also conducted an asset quality review and had given banks a deadline to clean up their balance sheet by FY17
Banks Board Bureau's proposal deserves careful consideration
In late 2015, RBI discovered 150 largest accounts which were facing problems in servicing their debt obligations
Gangwar said GNPA jumped from 5.43% in 2014-15 to 9.32% in 2015-16
Banks had commissioned techno-economic viability studies as well as forensic audits for stressed cases
According to bankers, this was on account of the cotton ginning industry which was the most affected sector in FY2015-16