Reacting to Finance Minister Nirmala Sitharaman’s Budget 2021, Dinesh Kumar Khara, Chairman of State Bank of India (SBI), said that it is an encouraging Budget and will go a long way in supporting the economy.

“It is a very encouraging Budget and it will go a long way in terms of supporting the economic activity and revival of economy. Infrastructure being the core sector and also it supports all the core industries, I think it will go a long way and it will also support the employment generation program, which perhaps will be major game changer for reviving the economy and pulling it back from the COVID effect,” he said.

On asset reconstruction companies (ARCs), he said, “It is a very good way to go ahead and resolve the problem relating to NPAs because earlier we have seen that there were ARCs but there was no resolution mechanism which was available. Post IBC, what has happened is now the resolution mechanism is available and the ecosystem has been strengthened in terms of resolution professional."

"So they will come and work under AMC and they will help in resolving the assets, which will be held by ARCs and also it will help in creating value which means that assets which will be held by the banks which is envisaged to the extent of 80-85 percent at this structure also, they will have value at which it will really help the banks to get the value out of those assets which was not the situation in the past.”

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(Edited by : Bivekananda Biswas)