NEW DELHI: Lok Sabha’s estimates committee headed by senior BJP leader Murli Manohar Joshi has demanded a written reply from Finance Secretary Hasmukh Adhia on its queries related to the rising Non-Performing Assets (NPA) and details of Assets Management Company announced by Interim Finance Minister Piyush Goyal.
The committee had asked Adhia, Economic Affairs Secretary Subhash Chandra Garg, representatives from RBI and the outgoing Chief Economic Advisor Arvind Subramanian, along with top officials from SBI and Punjab National Bank to appear before it on Tuesday.
While Subramanian excused himself from appearing before the committee citing prior engagement, other representatives appeared before the panel.
According to sources, the committee had raised “some pointed questions” to the Finance Secretary on the recapitalisation plan but failed to get “satisfactory response” from him. Following this, the panel asked him to give written replies to all the queries raised by it.
The committee has also directed Finance Ministry officials to appear before it again on Wednesday. “Even two days ago, the committee had summoned some bank officials and this will continue till they get a satisfactory answer. They wanted more clarity, which is why they have sought written responses,” a senior official from the Finance Ministry told TNIE.
The estimates committee examines the efficiency and usage of proposed government expenditure of taxpayer’s money.
“There were queries on what happened to the bailout package, which has used taxpayer’s money to clean the account books of Public Sector Banks. It also asked about the finer details on the AMC proposed by the recently submitted report by Sunil Mehta, non-executive chairman of Punjab National Bank. As it is under proposal, it is difficult to get details,” the official added.
The committee also asked why the NPAs have shot up so much in recent times.
The NPAs of Indian banks is currently little over Rs 10 lakh crore and seems to be getting difficult to manage.
According to the latest RBI report on financial stability by March 2019, the bad loans in the banking system is expected to rise further to 12.2 per cent of outstanding credit from 11.6 per cent in March 2018.