FM Sitharaman nudges PSU banks to take swift action against frauds, wilful defaulters

Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to take swift action in cases concerning fraud and wilful defaults to reduce bad loans and take steps to accelerate growth momentum, sources said.

Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till the financial year 2021-22.

In a recent meeting with heads of PSBs, the finance minister urged them to focus on having robust risk management practices and mitigating Cyber Security risks.

During the meeting, it was also emphasised that banks should follow a strong internal audit framework and adherence to caveats of internal policies, sources said.