The government has promised bankers protection for the credit decisions they take while sanctioning loans.

Union Minister of State for Finance Anurag Thakur assured bankers that they would not be penalised and hounded by government agencies just for taking commercial decisions.

"In my interactions with various bankers and officials, I think we have said it time and again, and I will say it again now that the decisions taken by you in course of business in good faith with a sound business rationale will not face any witch-hunt," said Thakur while addressing the 72nd annual general meeting of the Indian Banks Association.

"We have set up a panel which will look into all fraud related cases and bankers will be given protection. Frauds must be reported timely without any fear of repercussions. Be assured that the government is standing with the banking industry. And no decision taken in good faith will be treated adversely by any agency in the future. Feel free and take decisions in the interest of the banks and the country," he said.

In the last three months, a lot of issues about transfer policies have come to the government's knowledge, he said. "My request to IBA would be to look into the transfer and HR policies," he said, adding that it is difficult for employees, especially for women, to get transferred to distant locations.

Thakur said first there should be an attempt to resolve stressed assets outside the NCLT process, as this would help banks and the business community.

"I would, therefore, request bankers to try to resolve stressed assets in the right earnest and refer cases to NCLT only if satisfied resolution outside the NCLT is not available. We should not use NCLT for every case. This is going to help the business community, banks as well," he said.

The Insolvency and Bankruptcy Code was enacted in 2016 and until June 30, financial creditors or banks had filed claims worth Rs 2.53 lakh crore under it. The total recovery has been at Rs 1.08 lakh crore, showing a recovery rate of 42.8%.

"Bankers are performing a role today. Tomorrow they will be in another role. Nobody should feel that since they have only three months service so what is in it for me. Our effort should be such that in three months we should do something such that even after 30 years people will remember you as Chairman or MD who took decisions to grow the banking industry," Thakur