Blaming large borrowers for the increasing non-performing assets (NPAs) of public sector banks (PSBs), Finance Minister PChidambaram on Tuesday asked lenders to monitor 30 big bad debt accounts each. He expressed concern that recoveries were not taking place at the desired pace and asked these banks to set up a division each to monitor the recoveries from prudentially written-off accounts. Briefing the media after taking stock of PSBs’ performance, after a meeting with their chiefs, the minister said he disagreed with those painting a dismal picture of the economy. He said banks had cleared 137 of 176 big pending projects, involving investment of at least Rs 250 crore each. The minister said he hoped NPAs were a "function of the economy" and would improve with the recovery in economic growth. "We are monitoring the top 30 NPA accounts in each bank. It is a matter of concern that it is the big borrowers (with loans of over Rs 1 crore) who are defaulting," Chidambaram said.
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