PAC calls bank heads to discuss bad loans

Concerned over mounting bad loans, the Public Accounts Committee (PAC) has called the heads of public sector banks to explain issues relating to non-performing assets (NPAs), including the loans given to Vijay Mallya-led firms. “To begin with, the panel has called CEOs of Indian Bank and Indian Overseas Bank at its meeting in Chennai on February 27,” PAC chairman and senior Congress leader KV Thomas said. The PAC will be holding such meeting separately with other lenders. The panel is learnt to have already dispatched a questionnaire to the heads of banks. The questions asked are on quantum of the bad debts, the reasons for increase in such loans, steps taken to recover them and also the factors delaying the recovery. As on September 30, 2016 gross NPAs of public sector banks rose to ₹6.3 lakh crore, against ₹5.5 lakh crore at the end of the June quarter.