AMN / NEW DELHI
Union Finance Minister Piyush Goyal has announced setting up of a committee to give recommendations in two weeks on the formation of an Asset Reconstruction Company for faster resolution of stressed accounts of public sector banks.
After meeting the heads of state-owned banks in Mumbai today, Mr Goyal said the government stands solidly behind each of the 21 public sector banks (PSBs).
He said, the committee under Sunil Mehta, non-executive chairman of PNB, will make recommendations in two weeks on setting up of an Asset Reconstruction Company or Asset Management Company for faster resolution of stressed accounts. Mr Goyal said, most of the stressed assets have been identified that could fit into the ARC or AMC structure. Also, banks will consider having oversight committees with external experts to help faster decision making and resolving stressed accounts in a transparent and speedy manner.
Goyal said discussions during the meeting focused on credit flow and banks devising mechanism to ensure credit flow to good borrowers should not face difficulties. He said that all vacant positions of PSB heads will be filled in the next 30 days.
Mr Goyal said suggestions about strengthening governance process and honest recognition of NPAs or bad loans were discussed at the meeting. He assured that processes will be streamlined and customer interest protected.