Govt has not waived loans of big NPA defaulters: Jaitley

As per him, the government envisaged capital need of banks to the tune of Rs 1.8 lakh crore till FY 2018-19, and Rs 70,000 crore has been provided to the lenders accordingly.

The Union Finance Minister Arun Jaitley has dismissed the rumours that the government waived loans of big defaulters.
 
He said the government has taken firm decisions with regard to the defaulters.
 
"Insolvency and Bankruptcy Code (IBC) was enacted, and by amending it, in respect of companies whose money was not returned to the banks, decision was taken that the debtors concerned would not be allowed to participate in the business of such companies."
 
At the same time, the banks were given necessary capital so that public sector banks (PSBs) become strong and capable of contributing to nation’s development. 
 
"The reason for giving capital to banks is that these banks may become mazboot, i.e., strong, rather than mazboor, i.e., hard-pressed."
 
As per him, the government envisaged capital need of banks to the tune of Rs 1.8 lakh crore till FY 2018-19, and Rs 70,000 crore has been provided to the lenders accordingly. 
 
Through capital infusion, banks weakened by NPAs would become strong and become capable of raising adequate capital from the market, he said, adding that to receive this capital, banks will have to carry out several reforms, so that such situations do not recur.

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