(With inputs from PTI)

NEW DELHI: Union finance minister Arun Jaitley on Tuesday said the non-performing assets (NPAs) are on the decline as recoveries in the banking sector have picked up.At the annual review meeting of the public sector banks, the finance minister added that the last several years have been challenging for the state-owned banks as large amount of lending was held up in NPAs.On economy, Jaitley said, "We are passing through a phase of good growth."On growing fears on the liquidity in the sector, he further said that the PSBs are very confident that under these circumstances, they will maintain the liquidity.He asked the state-owned banks to take "effective action" in cases of fraud and wilful loan defaults, as he exuded confidence of achieving sustained economic growth rate of 8 per cent.Lenders have made recovery of Rs 36,551 crore in the first quarter of the current fiscal. This is 49 per cent higher than the same quarter of the last fiscal. During 2017-18, banks recovered Rs 74,562 crore.Jaitley said the formalisation of the economy through the Insolvency and Bankruptcy Code (IBC), GST, demonetisation and digital payments have enabled better assessment of financial capacity and risks, and coupled with inclusive growth through massive financial inclusion, has unlocked purchasing power which will drive India's growth.Financial Services secretary Rajeev Kumar said banks expect to recover Rs 1.8 lakh crore through IBC and other routes during the current fiscal. The review meeting Tuesday discussed credit growth and asset quality, he said.The focus should now be on arresting fresh slippages, he further said adding that close to Rs 18,000 crore worth of non-core assets will be sold by PSBs this financial year.