At 72nd annual general meeting of Indian Banks' Association (IBA), Anurag Thakur, Union Minister of State for Finance and Corporate Affairs stated on Wednesday, September 12, that banks should try and resolve loan related issues mselves. He tified to  people concerned that National Company Law Tribunal (NCLT) should t be used regularly. He emphasized on us of NCLT, stating that it should only be used when re is an absence of an alternative. Thakur furr ded that only when banks are t able to reach satisfactory resolutions, NCLT should be referred. 

'I would request bankers to try and resolve stressed assets in right earnest and refer cases to NCLT only if satisfied resolution outside NCLT process is t available.' Thakur proclaimed. 

RE: Merger Of Public Sector Banks A Positive: Infosys Finacle

Union Minister on Banks and Lenders

NCLT is a quasi-judicial body. Thakur stated that he does t want lenders to refer to  Insolvency and Bankruptcy Code (IBC) at every instance ding that re should be a structural internal process to retrieve money first. He assured banks to loan money out without being fearful of any 'witch-hunting' by any investigative industries. Thakur asked bankers to report on frauds timely so that actions can be taken against m. Thakur spoke of  110 basis points repo rate reduction by Reserve Bank of India and how in spite of it banks have t passed on full benefits to customers. 

'Only a fraction of rate cuts benefits were passed-on by banks to borrowers. I appeal to banks to furr pass on benefits of rate cuts to companies which will le to an increase in consumption cycle, reby, leing to a revival in ir investments.' he stated.

Thakur ded that banks are being encourd to lend more to  NBFCs (n-bank financial institutions). This will, in turn, improve availability of credit. He also stated that this would reduce liquidity crunch. Furrmore, Thakur asked  IBA to look into transfer policies in bank, especially for women. He ded that if you are going far from home to work and your mind is t mentally re n it is only going to impact customers. 

WATCH: Nirmala Sitharaman: Bank Merger Won't Le To A Single Job Loss

Mega-Merger by Government  

Finance Minister Nirmala Sitharaman h earlier anunced merger of 10 public sector banks into 4 major banks. Sitharaman h stated that unification of banks would create a strong and competitive banking system. She ded that this would prove to be cost-saving. In an effort to end ecomic stagnation, government has proposed merger of public sector banks to boost ecomy.

WATCH: Nirmala Sitharaman Anunces Four Major Bank Mergers: Full Details

(Inputs from PTI)