The finance ministry has formed a two member committee to assist public sector banks to ensure that PSBs leave no stone unturned in recovering their bad loans. The move comes as a measure to tackle low growth in loans and advances segment of the banking sector.
The two member committee has been given the task to follow up each and every case of bad debt with each of the PSBs. It has also been mandated to follow up bad loans cases registered by debt recovery tribunals (DRTs).
The ministry has appointed Mr. P.L. Gairola, the former Chairman & Managing Director of Dena Bank, and Mr Anil Girorta, the former Executive Director of Andhra Bank as members of the loan recovery committee.
The committee will hold meetings with executive directors and general managers of each bank, once a month, to review the status of each case. It will also set targets for the banks to achieve ahead of the next meeting.
To begin with, the committee will start with the review of loss assets and DRT cases of PSBs in the National Capital Region (NCR) which include banks such as Punjab and Sind Bank, Punjab National Bank and Oriental Bank of Commerce.