Finance Minister Nirmala Sitharaman on Friday said that there has been a record recovery of up to Rs 4 lakh crore of Non-Performing Assets of commercial banks since the last four years.
"Financial gains from the cleaning of the banking sectors are now amply visible. Non-Performing Assets (NPAs) of commercial banks have reduced by 1 lakh over the last year. There has been a record recovery of NPA of Rs 4 lakh crore through IBC and other measures over the last four years," she said.
"The Public sector banks are now proposed to be further provided with Rs 70,000 crores capital to boost credit to provide impetus to the economy," she said.
She also said that reforms for strengthening governance in public sector banks have been undertaken.
"Non Banking Financial Companies (NBFCs) that are fundamentally sound should continue to get funding from banks and mutual funds without being unduly risk-averse. For the purchase of highly-rated pooled financially sound NBFC assets of Rs 1 lakh crore during the current fiscal year, the government will provide one time six- month partial credit guarantee to public sector bank for first loss upto ten percent," she said.
Reforms in the Financial Sector:
She also said that the RBI will get more teeth over NBFC.
"Appropriate proposal for strengthing the regulatory authority of the RBI over NBFC are being placed in the Finance Bill," she said.