Banks partially recovered from NPA crisis in 2017

New Delhi Dec 27: The year 2017 would end on Sunday and the banking sector is slowly recovering from the NPA crisis in 2017.The RBI and the government have taken some important decisions in 2017 to restore the health of the banks.

Budget 2017: The Government has announced funds in budget for recapitalization of the banks as promised under the Indradhanush scheme and said that more funds would be released if necessary

Merger of Associate banks in SBI : The six banks such as Bharatiya Mahila Bank, State Bank of Patiala, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore, and State Bank of Hyderabad have merged with State bank of India from April 1 and the SBI became one of the global banks in the world

Empowerment of RBI: The Government had empowered the RBI to direct the banks to file Insolvency petitions in NCLT so that the loans can be recovered and the NPA problems can be solved.The RBI had already identified many companies and currently, some of the companies have agreed for settlement of debt

Recapitalization of Rs 2.1 L Cr: The government had announced a mega package to strengthen the banks by issuing recapitalization bonds and these funds would be allowed for banks which are weak.

FRDI Bill: The bill is currently pending in the parliament and it empowers the Resolution corporation to ensure that banks don't undergo insolvent.

Finally, banking sector experts feel that there would be more consolidation of PSBs in 2018 and the government may undertake more reforms to improve the health of banking sector.