Vadodara: Federation of Indian Chambers of Commerce and Industry (FICCI) president Rashesh Shah said on Thursday that non-performing assets (NPA) in banking sector has affected the economy but the government is doing well to recover the dues.Shah was in the city address a session on ‘Role of Industry in Realizing the Dream of New India’ at the Federation of Gujarat Industries (FGI).“High NPAs were a problem three years ago. It did affect the economy but the government is working well to bring them down. The banks too are doing good to clean up their system,” Shah said.When asked about the government’s decision to merge three public sector banks, Shah said that it was a good move. “Do we need so many public sector banks? I think we need only four to five public sector banks. Rest can be either merged or privatized. The government realized it after the bank NPAs episode,” Shah added.He also admitted that demonetization and Goods and Services Tax (GST) has adversly affected the micro and medium sector enterprises (MSME). “The big companies managed to deal with the changes but smaller and medium ones suffered. The government is making efforts to help them,” Shah said. He, however, added that the economy is on the upswing and the GDP for this year is expected to touch 8% .

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