The government was making efforts to ensure more regulatory mechanism in the banking sector to benefit bank account holders, she said in the context of the PMC Bank and IL&FS issues. On the PMC Bank scam, Sitharaman said the RBI has started making sure there are steps taken within the institution that would strengthen the supervisory and regulatory roles.
On non-performing assets (NPAs), she said they multiplied between 2007-08 and 2013 and had become a burden on the banks’ books. However, banks had taken corrective action and most of them are out of it, she said. “As a result banks are also going through a churn of how to assess their risk and how to rate property or asset. And in this we had even discussions with credit agencies on how to really rate assets,” she said. Sitharaman said she has met a few credit agencies to understand if the way in which they rate was consistent with what is happening in the economy.
The NDA government was ‘receptive’ to issues faced by the Indian businesses, she said. —FE