Jaitley blames NPA woes to ‘indiscriminate lending’ under UPA

MUMBAI: Amid the tug of war between ruling BJP and Opposition Congress over the higher growth numbers during the latter’s tenure, Finance Minister Arun Jaitley today termed the higher GDP prints and NPA pile to the indiscriminate lending before and after the 2008 global credit crisis.

Addressing the AGM of bankers lobby IBA through a video link this evening, Jaitley who resumed office last week after a medical leave since April, blamed the NPA pile, which is about 12 per cent of the system, and the macroeconomic problems of fiscals 2013 and 2014 to the debt-driven growth and banks funding unsustainable projects during the previous regime.

“If we have growth which is engineered on the strength of a 31 or 28 per cent credit offtake in a given year, then history will certainly record it as some indiscriminate lending, which is bound to show its impact on the future,” he said without naming the past Congress-led Government. (AGENCIES)