Amendments in banking law to help effectively fix NPAs: Lavasa

The finance ministry of India on Thursday swore by the changes proposed in the banking law that it said will go a long way in effectively resolving the problem of bad loans plaguing the banking sector.

"It is not possible for me to put down a number on how this (non-performing assets or NPAs) will go down, but certainly we feel that these changes will make the system more effective in handling the bad loans," Finance Secretary Ashok Lavasa told reporters here.

The Cabinet on Wednesday approved promulgation of an ordinance to amend the Banking Regulation Act for resolution of the NPA problem.

As per law, an ordinance has to be ratified by Parliament within 6 months of its promulgation. So, when the Monsoon Session begins, the law will be taken up by both the Houses for discussion and passage.