Steps taken for recovery of loans from big defaulters via insolvency route: Arun Jaitley

Union Finance Minister Arun Jaitley said that big defaulters are responsible for higher Non Performing Assets, NPAs, of banks. 

Speaking in Pune on the occasion of the Centenary year of Pune District Central Cooperative Bank yesterday, Mr Jaitley said that recovery of money from these big defaulters has become a big challenge. 

He said NPA is low where smaller amount of loans have been taken for agricultural and smaller businesses and even in MUDRA scheme the defaulters are miniscule. Finance Minister said that for the first time, government is taking steps to take these big defaulters to insolvency so that the recovery can be made and that money can be utilised for the growth of the rural sector.

Mr. Jaitley further said that banks play an



important role in the growth of the country therefore it should maintain its credibility. Banks offer loans different purposes but if the banks's capacity to offer the loans gets affected because some big defaulter people. He added that due to this growth of the rural sector as well as the entire country gets affected. 

On the occasion, NCP chief Sharad Pawar, who presided over the function spoke about the success of the Bank and mentioned that the Pune District Central Cooperative, PDCC, bank has zero per cent NPA.

Maharashtra Chief Minister Devendra Fadnavis in his speech said that the state government is scrutinising applications of farmers for farm loan waiver and by October the government will start crediting the amount in the farmers' account.