Third phase of Gyan sangam to focus on consolidation of banks

The government told that it has started the second edition of Gyan sangam and in the third phase of Gyan sangam it has planned to focus on Consolidation of banks.

Gyan sangam

Gyan Sangam is a retreat for banks and financial Institutions. It was held for the first time last year.

Flash points

• State minister of finance, Jayant sinha told that the transformation has to be carried out in phases
• He also mentioned that currently they are in second phase of Gyan Sangam which focuses on Asset Quality Review and strengthening of assets of banks
• Sinha also told that the Finance ministry is closely working with RBI on the assets quality review and now the assets of the banks have stabilized
• The second edition of Gyan sangam is likely to focus on the Consolidation of banks in its third phase
• During his budget speech, Arun Jaitley told that a road map for consolidation of banks will be laid out
• RBI wants to clean up the bad loans of banks through AQR by March,2017
• Sinha also told that by strengthening resolution capabilities and through Bankruptcy code stressed assets can be brought under control

Points to note

• The stressed assets are about Rs 8 lakh crore of the total advances of scheduled commercial banks
• The total loan book accounts for 69 lakh crores out of which 11% are stressed assets