Financial Services Secretary Rajiv Takru on Tuesday held a meeting with the chiefs of public sector banks to review the problem of mounting bad loans leading to increased non-performing assets of banks.

In his maiden meeting with PSB chiefs after taking over as Secretary of the Department of Financial Services in the Finance Ministry, Mr. Takru also took up for discussion a host of other issues such as the aspect of financial inclusion and the direct benefit transfer scheme which is operated through the banking channel.

After his meeting with the bankers, Mr. Takru said: “NPAs are a bad idea. Sooner we address it, better it is. They [bank chiefs] are serious about it”.

Significantly, the average NPA levels of public sector banks have increased by nearly one percentage point to 4.01 per cent in the first six months of the current fiscal till September 2012 from 3.17 per cent in the last fiscal year ended March.