Union Finance Minister P Chidambaram on August 29 said that banks must ensure flow of credit to every sector of industry. He said that bankers have been told to be sympathetic and have humane approach towards genuine defaulters. He said that this is the time for hand holding of borrowers who are facing difficulties, especially industry.
He said that genuine defaulters and wilful defaulters need to be dealt with separately. Bank must be strict with willful defaulters, he added.
The Finance Minister was speaking at the Third Parliamentary Consultative Committee Meeting of his Ministry in Delhi. The subject matter for the discussion of the day’s meeting was NPAs in Public Sector Banks (PSBs) and measures taken to contain them.