May 27, 2015 7:31 AM

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Public sector banks' NPAs would come down gradually: FM

Union Finance Minister Arun Jaitley on Tuesday said, Non-Performing Assets of public sector banks will come down gradually over the next two-three quarters. Asked about what steps were being taken to reduce the NPAs, Mr Jaitley, who was in Ahmedabad to brief media about achievements of the NDA government in the last one year, said the Centre is working on it. Mr Jaitley said when the NDA came to power, the ratio of NPAs of public sector banks was 6 per cent. He said now, in the quarter ended 31st of March, it came down to 5.2 per cent, which was 5.84 per cent at the beginning of quarter. The Minister said the NPA ideally should be 2 to 2.5 per cent.Commenting on media claims that majority of Jan Dhan accounts do not have any deposits, Mr Jaitley said media was not aware of the actual purpose of these accounts. He said the primary objective of Jan Dhan Yojana is to open bank accounts for those who don't have even one rupee. He added that the Government will deposit money into these accounts in the form of subsidy, pensions, wages under MNREGA scheme and all such government payments and this has already started.

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