June 5, 2016 7:46 PM

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FM promises greater capital support to banks, warns defaulters

Amid 10 state-run lenders suffering losses of over Rs. 15,000 crore in the March quarter, Finance Minister Arun Jaitley has promised greater capital support to banks while warning that defaulters cannot be allowed to 'sleep well', leaving all the worry to bankers.He also rejected suggestions that huge losses being posted by public sector banks were like 'skeletons tumbling out'.He said Non Performing Assets, NPAs were mostly due to business-related losses in certain sectors, rather than due to frauds.Mr. Jaitley, who was on a six-day visit to Japan to attract investments, told PTI that the losses were because of provisioning to cover for bad debt.He pointed out that most of the banks including State Bank of India and PNB had good profits at operational level.

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