In an effort to help banks facing asset quality woes and to revive investments in the critical infra sector, the government today discussed 85 large projects entailing Rs 3.51 lakh crore in outstanding bank credit. After a specially-convened meeting at the RBI headquarters, Financial Services Secretary Hasmukh Adhia said a total of 85 such projects, from the power, steel, roads and ports sectors, with an outstanding bank credit of Rs 3.51 lakh crore were discussed. He told reporters, that efforts were made to analyse the various reasons for stress in the infrastructure projects. He said 4 per cent of projects discussed on Tuesday were classified by lenders as NPAs. Those present at the meeting included Reserve Bank Deputy Governor SS Mundra, special secretary at the Union Power Ministry RN Choubey, State Bank of India chairman Arundhati Bhattacharya and the chairman of the bankers' lobby group IBA, TM Bhasin.Around 13 public sector lenders were part of the meeting. Addressing the media, Mundra said the central bank will examine all issues related to the stalled projects. Concerned over rising bad loans in infrastructure sector, the Finance Ministry had called the meeting of heads of public sector banks to prepare a roadmap for clearing bottlenecks that hamper implementation of large projects. The meeting was aimed at helping the department crystalise actions required by banks, the Finance Ministry and other central ministries as well as support required from the Reserve Bank.
News On AIR | April 28, 2015 6:49 PM
Govt discusses 85 large projects, NPAs with RBI, banks