Jaitley asks PSBs to take effective action against frauds, wilful defaults

Finance Minister Arun Jaitley Tuesday asked public sector banks to take "effective action" in cases of fraud and wilful loan defaults. Reviewing the performance of state-owned lenders, he exuded confidence that formalisation of the economy would help India achieve sustainable growth of 8 per cent. "FM, Shri @arunjaitley exhorted the banks to ensure all steps at their end to ensure clean lending & effective action in cases of fraud & wilful default, to justify the trust reposed in banks. Banks must strive to be seen always as institutions of clean & prudent lending," the Finance Ministry said in a tweet. The meeting is taking place in the backdrop of the 'Alternative Mechanism' (AM) deciding to merge three public sector banks -- Bank of Baroda, Vijaya Bank and Dena Bank -- with a view to create a global-size lender which would be stronger and sustainable. Banks have stepped up efforts as far as recovery of bad loans is concerned. Lenders have made recovery of Rs 36,551 ...

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