Solving NPA problem is top priority, says Principal Economic Advisor

He defended the government's move on the Insolvency and Bankruptcy Code (IBC).

The government will not create a bad bank. 
 
Rather, it will solve NPA problem on a priority basis, with a focus on creating a long-term framework for strong and stable growth, said Sanjeev Sanyal, Principal Economic Advisor. 
 
He was speaking at a Ficci event in Mumbai on Wednesday.
 
“Solving the NPA problem is the top most priority right now though consolidation is important,” he said.
 
The gross non-performing advance (GNPAs) ratio of SCBs amounted to 9.6% in March 2017. 
 
He defended the government's move on the Insolvency and Bankruptcy Code (IBC). 
 
Responding to criticism on the IBC that bankruptcy laws were not tested, Sanyal said that despite gaps, it was the only option because modelling would not work here.
 
“The idea is to do it, seek feed backs and fix it,” he said.
 
He, however, did not discount the need for consolidation in the banking sector. 
 
Source: ET.com

Event date: 
Thursday, September 7, 2017

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