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With recovery of NPAs, banks can now offer more credit to major sectors, MSMEs: Piyush Goyal

Updated: May 19, 2018 07:56:44am
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With recovery of NPAs, banks can now offer more credit to major sectors, MSMEs: Piyush Goyal

New Delhi, May 19 (KNN) With recovery of NPAs, banks will now be in a position to offer more and affordable credit to major sectors of the economy especially the MSME sector, said Union Minister Piyush Goyal.

This will boost employment & the economy even more,” Goyal, who has been given additional charge of Ministry of Finance, added

Union finance ministry had said that successful  acquisition of debt-ridden Bhushan Steel by Tata Steel through insolvency and bankruptcy law  will increase lending capacity of banks.

“Lenders recovered almost entire principal loan of Bhushan Steel through Rs 36,400 crore  transparent bid by Tata Steel and also got 12 per cent stake in the company.

This was possible due to the robust and transparent Insolvency and Bankruptcy Code brought by this government, tweeted Goyal.

He said that for the first time such a large loan resolution has been achieved through upfront payment received by banks through sale of a company.

“This is a record step towards resolving the legacy of unprecedented amount of bad bank loans inherited by this government.”

Finance minister said that NPA resolution process is being done through a fair and transparent Insolvency & Bankruptcy Code helping boost both the banking sector and the economy.

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