Nothing to worry, ICICI Bank has robust systems: Piyush Goyal

For the first time, the government has broken its silence on the governance issues at ICICI Bank. Interim finance minister Piyush Goyal said in press conference, "ICICI Bank has robust and systems and processes. Investigations and its finding will be out soon. As far as the law is concerned, the law of the land will take its own course."

He however said he did not know why the government nominee on the board of the bank is not attending the board meetings. He said, "I will find out."

Goyal was in Mumbai to chair a meeting of public sector bank chiefs of the western and northern region. The main agenda of the bank chiefs meeting was to discuss how credit flow can improve to the various sectors and to have a co-ordinated approach among the banks. To resolve the NPA issue which is pushing most public sector banks into losses, Goyal said the government is planning to set up an asset reconstruction company (ARC). Banks have reported a consolidated NPA of Rs 9 lakh crore at the end of the financial year 2017-18.

The government is planning to set up an Asset reconstruction company (ARC) that will buy out the bad loans of the banks. A panel under Punjab National Bank chief Sunil Mehta will give recommendations in two weeks on the formation of asset reconstruction companies/asset management companies (ARCs/AMCs) to resolve the problem, he said in Mumbai after discussions with public sector bank heads.

On why the government was not unable to resolve the bad loans issue in these five years that NDA was in power, Goyal said government is speeding up clearances for projects improving coal linkages for power plants.

He also added that in the next 30 days, executive positions in public sector banks will be filled up.

ICICI Bank