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Banking system's careless lending led to problems: Venkaiah Naidu

Chennai: Vice President M Venkaiah Naidu said on Thursday that the banking system is facing problems due to "mindless lending earlier" and banks should learn from their experiences so that such issues do not reoccur.

In Pic: Vice President M Venkaiah Naidu

Participating in the platinum jubilee celebrations of the Tamil Chamber of Commerce, he said, "The banking system is going through a transformation. You are also seeing the problems that have arisen due to mindless lending earlier."

"Now, you are all seeing how the money is getting collected. We have to take steps. Banks must learn from their experience of what happened and see to it that such things do not reoccur," he added.

The aggregate gross non-performing assets (NPAs) of commercial banks increased from Rs 3,23,464 crore, as on March 31, 2015, to Rs 10,35,528 crore, as on March 31, 2018.
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Naidu suggested that India must take initiative and the entire global community must come together to enable automatic exchange of information with regard to bank accounts in different countries.

"The entire world should come together and have agreements so that fraudsters are taken to task. This is very important in view of the recent experience we had," he informed.

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