New Delhi, Sept 26 (KNN) Public sector banks are expecting recoveries of loans to the tune of Rs 1.8 lakh crore this financial year from Non-Performing Assets (NPAs), said Arun Jaitley, Union Finance Minister. 

He was speaking at the press briefing after an annual review meeting with the heads of the public sector banks.

He said that non-performing assets with public sector banks are on decline.

Having a positive effect on recoveries because of Insolvency and Bankruptcy Code and NCLT proceedings, borrowers are paying their dues in time, he added. 

As per banks expectations, credit growth to pick up over the year, Jaitley added.

He also directed the heads of the public sector banks to take "effective action" in cases of fraud and willful loan defaults.

In the context of NPA’s Jaitley said, “The light at the end of the tunnel.”

Sharing the future strategy, Department of Financial Services, Secretary, Rajeev Kumar said “Provisioning has been made, recapitalization has been announced; thus focus should be on arresting fresh slippages.”

Kumar said that bankers have decided to set up a "strict action plan" to take "timely action" before any account turns into a non-performing asset (NPA).

During the performance review meeting of PSBs, banks have pitched for a relaxation in the Reserve Bank of India's (RBI) prompt corrective action (PCA) norms.