FinMin suggests loan swapping to PSBs

Public sector banks (PSBs) had been asked to explore the option of selling and swapping of loan assets with other lenders in order to strengthen their balance sheets. It would also help them to focus on their core competencies and trim their burden.

Finance Ministry has also asked the banks to open micro, small and medium enterprises to increase the credit availability to small businesses. In October,Finance minister Arun Jaitley had announced an unprecedented Rs 2.11 lakh crore plan to strengthen public sector banks that are reeling under high non-performing assets (NPAs) or bad loans.