A seminar was organised in Chandigarh on Saturday to discuss the challenges being faced by the banks in dealing with defaulters in terms of recovery.
The seminar, The Challenges in the Banking Sector and the Road Ahead, was organised by Progressive Lawyers’ Forum of Punjab and Haryana High Court in association with various banks at Judicial Academy at Sector 43.
Speaking on the occasion, Justice K Kannan, Punjab and Haryana High Court judge, said large number of banks in the country are facing significant challenges owing to adverse global and local economic environment.
“As a result, banks in India are saddled with unprecedented non-performing loans on their books. The credit growth has also been negatively impacted signaling conservative outlook by Indian corporate. Globally emerging markets have shown decline in their growth rate, especially China. India is hoping to sustain the growth rate and offer more opportunities for global investors,” he said.
Justice Ranjit Singh, chairman, Debt Recovery Appellate Tribunal, Delhi said the problem of non-performing assets is not only affecting the banks, but also the whole economy.
“It is eating away the Indian economy slowly and steadily as it is making the credit costly and scarce. Unless it is managed effectively and quickly, it will march the financial inclusion as well as infrastructure development in the country,” he said.
The seminar was attended by general managers, deputy general managers and senior executives of various nationalised and private banks, lawyers and chartered accountants.