Finance Minister Arun Jaitley Speaks On Bank Reforms: Highlights

New Delhi: The second "Gyan Sangam", the retreat of heads of public sector financial institutions, concluded today at the State Bank Academy, Gurgaon. Below are the highlights of Finance Minister Arun Jaitley's press conference:

• You need strong banks, than numerically a larger number. There needs to be consolidation of banks
• There are several suggestions to amend the Sarfazi and DRT acts. This is at advanced stage of consideration
• We are also considering e-sops for bank employees. This is at advanced stage of consideration.
• As far as recovery is concerned, there are enough steps banks can take to recover (bad loans) under existing norms. Some banks are trying , some assets are transferred, and banks get the money bank. Nobody is being spared in the long run though 
• Won't write off bad loans
• Government is keeping banks immune to politics

Jayant Sinha, Minister of State For Finance

• Review of asset quality review: number of ideas as far as resolution process is concerned, there were lots of ideas brought forward.
• On non core assets ( for banks to recover loans): This was not a major discussion topic here. But there is an effort to monetize non core assets
• On how is expert committee going to be different : This was a recommendation by banks. We have to figure out how we merge everything together
• Stake of international firms in state run bank: It's upto RBI to see whether they want to relax it for private banks. Nothing for government banks yet
• There are several types of bad bank. We did discuss it. There was discussion in stress asset banks.