Expressing concern over rising bad loans, Finance Minister P. Chidambaram today asked banks to take firm steps to recover loans.
Chidambaram, who was talking to the media after meeting the heads of PSU banks and financial institutions here, said: "We wish banks take firm steps to recover NPAs. Promoters have to bring in additional money and companies have the duty to pay back loans."
Chidambaram said recovery has improved in the past one or two months and banks will take more steps to deal with the rising NPAs without hurting the industry.
"We cannot have an affluent promoter and a sick company. Promoters must bring in money ... Without doing anything that will kill the business of industry, banks will have to take steps to recover the NPAs," he said.
Chidambaram also expressed hope that the Reserve Bank of India (RBI) will address liquidity concerns of the economy in its monetary policy to be announced tomorrow.
"The RBI Governor is also aware of issues of liquidity and tomorrow is the monetary policy and am sure he will address the issue of liquidity," he said.
Chidambaram also said the RBI and Finance Ministry have started inquiry into charges of money laundering by some employees of three private sector banks.
Commenting on the proposed all-women bank, the Finance Minister said the expert committee headed by M B N Rao for the purpose met for the first time on Saturday and the panel will give a blueprint on the bank by the end of April. (ANI)