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What about NPAs, asks former Minister

By Our Special Correspondent

CHENNAI May 28. Responding to survey by FICCI, which showed that corporates were not benefiting from cheaper interest rates, the former Minister of State for Finance (Banking), M.R. Janarthanan, has asked the FICCI if it could compare the Non-Performing Assets (NPAs) of Indian institutions/ industries with that of China.

In a statement issued here, Mr. Janarthanan said that it might be true that interest rates in China, for its exporters, were cheaper than the Indian banking rates, but the NPAs created by Indian industries was a "huge burden" on the banking system and a danger to the economy.

"It is time for FICCI to fix a time-limit, say within two Five-year plans, to completely eradicate or at least reduce by 50 per cent, the existing NPAs, reimbursing the loans to the banks", he added.

He also drew attention to the labour situation in the country and said, "our organised labour, which is only 10 per cent of the labour strength, is demanding their democratic rights at the cost of the 90 per cent unorganised labourers. We cannot be a successful competitor in the world unless we rectify our labour system and repayment system by the industries."

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