India’s banking sector needs to "conceive"
several reforms and there is a need to give greater autonomy to banks and those
non-performing loans in some cases was "unacceptable", according to
Finance Minister Arun Jaitley.
Speaking on the sidelines of a two-day banking
retreat, Jaitley added that there is a need to get the best talent into the
system. There is a need for far greater autonomy being given to state-run
banks.
The State-run banks recorded the highest level of
stressed loans at 12.9 per cent of their total advances in September last year,
while the same ratio for private sector banks was at 4.4 per cent, according to
central bank data.
The country's top bankers have gathered in Pune to
discuss long-pending reforms vital to improving the health of ailing public
sector banks in Asia's third-largest economy.
“There are
unacceptable levels of NPAs (non-performing assets) in some cases and the banks
have to be given a sufficient amount of leeway ... to deal with commercial
issues with a commercial mindset,” Jaitley added.
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