The government has allocated Rs. 30,600 crore guarantee approved

In the last six years, banks have raised Rs. 501479 crore recovered: Nirmala

Only two of the public sector banks were in a position to make a profit in 2018 while only two banks made a loss in 2021.

New Delhi: The government has approved a guarantee of Rs 30,600 crore for a security receipt issued by National Asset Construction Company Limited (NARCL) Arthwa Bad Bank.

Union Finance Minister Nirmala Sitharaman today said that the Union Cabinet has approved the proposal. The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi. Nirmala Sitaram said banks have recovered Rs 501,479 crore in the last six years. Out of which Rs 3.1 lakh crore has been recovered after March, 2018.

1.2 lakh crore has been recovered in 2018-19. He further said that in 2018, only two of the public sector banks were in a position to make a profit. The finance minister said 15 per cent cash payment would be made to banks for NPAs based on the valuation. While a security receipt will be issued for 85 per cent.

The Union Cabinet has approved a government guarantee of Rs 30,600 crore to maintain the value of security receipts. Informing reporters about the decision, the finance minister said banks have recovered Rs 5.01 lakh crore in arrears in the last six years. Out of which Rs 3.1 lakh crore has been recovered till March, 2018.